KUALA LUMPUR (May 14): VSTECS Bhd (KL:VSTECS) posted a 24% rise in net profit for the first quarter of 2025 on the back of higher information and communications technology (ICT) product sales.
Net profit for the quarter ended March 31, 2025 (1QFY2025) rose to RM17.75 million from RM14.32 million in the same period last year, according to the ICT products distributor’s bourse filing on Wednesday.
No dividend was declared for the quarter.
Revenue increased 12.2% to RM691.67 million versus RM616.36 million in 1QFY2024 amid contribution growth across all three business segments underpinned by strong digitalisation trends.
The ICT services segment led as the key growth driver with a 37% year-on-year (y-o-y) rise in revenue, thanks to sustained demand for cloud solutions and related services. The enterprise systems segment logged a revenue increase of 11%, followed by the ICT distribution segment with 6%.
The results signal a strong start to the financial year, according to VSTECS CEO Soong Jan Hsung, with it being the group’s best first-quarter performance.
“We are benefiting from multiple growth vectors and ICT spending remains resilient amid the relentless pace of digital adoption, expanding AI use cases and the rising demand for next-generation technologies,” Soong said in commenting on the tailwinds aiding the group’s earnings growth.
Looking ahead, VSTECS noted the ICT sector has been directly impacted by fluctuating tariffs on semiconductors and restrictions on the export of certain technology products, which have disrupted market confidence and may lead to pricing instability, supply chain disruption and shifts in customer purchasing behaviour.
“While consumer sentiment shows signs of caution amid these uncertainties, both enterprise and public sectors remain committed to advancing their digitalisation and AI transformation agendas. This ongoing investment signals resilience within the ICT sector,” the group said.
With this sentiment in mind, VSTECS expects to maintain positive momentum in upcoming quarters and sustain the growth trajectory for the remainder of the year.
Shares in VSTECS ended three sen or 0.94% higher at RM3.21, valuing the group at RM1.14 billion.
Source from https://theedgemalaysia.com
