VSTECS Bhd posted a 40% year-on-year jump in net profit to RM53.2 million for the first half of FY26 (1H26), as broad-based demand across its enterprise, distribution and services businesses lifted revenue 41% to RM2.13 billion.

The strong half-year performance was underpinned by double-digit growth across all three operating segments, reflecting sustained demand for ICT products, enterprise systems and cloud-related services.

For the second quarter, net profit surged 50% to RM30.3 million, while revenue reached RM1.08 billion, marking the third consecutive quarter that quarterly revenue exceeded RM1 billion.

The Enterprise Systems segment was the main growth driver, with revenue jumping 46% year-on-year to RM567 million, helped by a higher number of public-sector projects. The segment accounted for 53% of group revenue during the quarter.

ICT Distribution revenue rose 20% on healthy shipment volumes, while ICT Services grew 14%, supported by stronger enterprise project activity and continued expansion in cloud services.

Chief Executive Officer JH Soong said demand remained resilient despite global shortages of CPUs and memory chips, which have pushed up component costs and lengthened lead times.

He added that demand for digital transformation, artificial intelligence and cybersecurity infrastructure continues to support enterprise spending, while recurring cloud subscription revenue is strengthening the contribution from the group’s ICT Services business.

VSTECS said it remains optimistic on the longer-term outlook for the ICT sector despite near-term supply constraints and pricing pressures, supported by Malaysia’s expanding digital economy.

Source from https://www.businesstoday.com.my/