KUALA LUMPUR (Nov 12): ICT products group VSTECS Bhd (KL:VSTECS) said it expects to post another year of record revenue and profitability after delivering its strongest-ever quarterly performance for the third quarter, underpinned by the accelerating adoption of digital technologies, cloud computing and artificial intelligence (AI).
The company’s net profit climbed 31.7% to RM25.78 million for the three months ended Sept 30, 2025 (3QFY2025) from RM19.57 million a year earlier. Revenue expanded 17.8% to RM991.94 million from RM841.76 million, driven by higher contributions across all three core segments — ICT distribution, ICT services and enterprise systems.
The group also recorded a foreign exchange and fair value gain of RM2.3 million, compared with a loss of RM352,000 a year ago, according to its bourse filing on Wednesday.
VSTECS declared a first interim dividend of 2.8 sen per share, payable on Jan 7, 2026.
For the first nine months of FY2025, the company’s net profit rose 29.6% to RM63.7 million from RM49.14 million in the previous year’s corresponding period, while revenue rose 20.2% to RM2.5 billion from RM2.08 billion.
Commenting on its business prospects, VSTECS chief executive officer JH Soong said the ICT distribution segment continues to benefit from strong consumer demand, supported by new product launches in smartphones and connectivity devices.
The enterprise systems segment, he said, saw stronger momentum in public sector projects, with several major projects slated for delivery by year-end and others extending into next year.
Meanwhile, the ICT services segment is seeing steady growth as enterprise projects increasingly require implementation, managed services and ongoing technical support, he added in a statement.
“Cloud adoption remains a key growth driver. We are working closely with our partners to help enterprises modernise their infrastructure for greater agility and scalability. Our current momentum positions us well to deliver another year of record revenue and profitability,” said Soong.
He added that Budget 2026’s RM6 billion allocation for AI research, development and adoption under the National AI Action Plan 2030 further strengthens the industry outlook.
“AI is poised to be a powerful growth catalyst, unlocking new opportunities across all business segments as both consumers and enterprises embrace its potential. Our focus remains on enhancing capabilities, broadening solutions and staying ahead of the curve to capture the next wave of growth,” he said.
Shares of VSTECS closed up 1.93% or eight sen at RM4.22 on Wednesday, giving the company a market capitalisation of RM1.52 billion.
Source from https://theedgemalaysia.com/
