KUALA LUMPUR (Aug 12): Information and communications technology (ICT) distributor VSTEC Bhd (KL:VSTECS) posted a 50% year-on-year (y-o-y) jump in second-quarter net profit, driven by broad-based growth across its business segments and higher public sector project deliveries.
Net profit for the quarter ended June 30, 2026 (2QFY2026) rose to RM30.31 million from RM20.17 million a year earlier, while revenue grew 31.7% to RM1.08 billion from RM818.87 million, according to the group’s Bursa Malaysia filing on Wednesday.
No dividend was declared for the quarter under review.
The group’s enterprise systems segment was the key growth driver, with revenue surging 46.2% y-o-y to RM567 million, supported by a higher number of public sector projects compared with the same period last year. The segment accounted for 53% of the group’s overall revenue.
Revenue from the ICT distribution segment rose 19.6% y-o-y, backed by healthy shipment volumes and sustained consumer demand for digital devices, while the ICT services segment recorded a 14% y-o-y increase on higher enterprise project activity and continued expansion in cloud services.
For the first half ended June 30, 2026 (1HFY2026), VSTEC’s net profit rose 40.3% y-o-y to RM53.19 million, while revenue climbed 40.7% y-o-y to RM2.13 billion, with all operating segments recording double-digit growth.
Its chief executive officer JH Soong said the performance was achieved despite external headwinds, including global shortages of central processing units (CPU) and memory chips that have pushed up component costs and lengthened lead times.
“Price inflation has been more pronounced in the enterprise market, where server and storage system prices have more than doubled,” Soong said in a statement. “While some projects have been delayed, organisations pursuing digital transformation, AI adoption and cybersecurity initiatives are unlikely to defer critical infrastructure investments.”
He said demand in the consumer-focused ICT distribution segment remains resilient despite price increases, as digital devices continue to be essential for work, education and modern lifestyles.
Meanwhile, the ICT services segment continues to provide stability through recurring cloud subscription revenue while benefiting from growing demand for value-added services as enterprises migrate workloads to the cloud, Soong added.
Shares in VSTECS closed four sen, or 2.34%, higher at RM1.75 on Wednesday, giving the group a market capitalisation of RM1.89 billion.
Source from https://theedgemalaysia.com/
