PETALING JAYA: SNS Network Technology Bhd
remains positive on the ICT industry and expects artificial intelligence (AI) to play a significant role in its growth going forward.
For the second quarter ended July 31, 2024, the group’s net profit was down by 30% year-on-year (y-o-y) to RM6.3mil or earnings per share of 0.39 sen. This was mainly due to the lower revenue recorded, and the increase in selling and distribution expenses because of the increase in salaries and commissions to third-party online marketplaces as well as increase in marketing and promotional expenses.
SNS Network’s revenue declined by 9% y-o-y to RM303.7mil, mainly attributable to the secured major orders of the company to supply mainly laptops for the education industry through the commercial channel in the corresponding financial quarter.
For the first half of its financial year 2025, SNS Network’s net profit was down by 40% y-o-y to RM10.1mil. The group’s revenue also fell by 17% y-o-y to RM517.3mil.
In a filing with Bursa Malaysia, the group said the ICT products and services industry is expected to be continuously driven by the wide usage of ICT in everyday lives by the public and businesses to perform daily and business activities.
Additionally, it will also be supported by the replacement cycle of devices and continuous technology advancement, the implementation of initiatives by the government for digital transformation, as well as the incorporation of ICT to promote digital education in schools.
SNS Network said the group intends to set-up 10 new stores in Malaysia to increase its customer base. In May, the company launched a new multi-brand concept store in Penang and subsequently in October it will be launching a new multi-brand concept store located in Selangor.
The group added it has put in focus to support the expansion of the DaaS subscription-based service for its existing and future DaaS subscription agreements.
Looking ahead, SNS Network said its commitment to innovation remains steadfast, with a focus on embracing emerging technologies that align with its mission and values. It also has a positive outlook on the ICT industry, complemented by the development in AI technologies.
SNS Network said this will result in the continuous growth of demand for ICT products and strengthen its existing customer base while expanding its market share in attracting new customers.
The company declared a second interim single-tier dividend of 0.25 sen per ordinary share amounting to RM4.05mil in respect of the financial year ending Jan 31, 2025, payable on Nov 26, 2024.
