KUALA LUMPUR (Aug 13): Information and communication technology (ICT) products distributor VSTECS Bhd (KL:VSTECS) is expecting “exceptional momentum” for the rest of FY2025, said its CEO J H Soong, as the group reported a 32.3% jump in its second-quarter net profit.

The group said its portfolio of products and solutions continues to be in strong demand across both consumer and enterprise segments. It also sees minimal disruption to the ICT sector despite global headwinds such as the US tariffs and the sales and services tax expansion at home.

It is now well-positioned for further growth in the third quarter, with the planned launches of major endpoint devices that are expected to drive consumer sales, it said in its quarterly results filing on Wednesday.

“Additionally, a number of public sector projects are slated for award and implementation for the second half of the year to further strengthen the enterprise revenue. With robust product momentum and strong public sector activity, we remain confident in a positive outlook for 3Q and the rest of 2025,” it said.

For the second quarter ended June 30, 2025 (2QFY2025), the group’s net profit leapt to RM20.17 million from RM15.25 million in the same period last year, as it saw higher sales from all three of its core business segments of ICT distribution, enterprise systems and ICT services. Revenue grew 31.1% to RM818.87 million from RM624.39 million. No dividend was recommended.

For the first half of FY2025, VSTECS’s net profit rose 28.2% to RM37.92 million, as revenue climbed 21.7% to RM1.51 billion from RM1.24 billion.

The enterprise systems division was its top contributor, with revenue jumping 21.9% to RM695.37 million. This was supported by growth across all major products, except for consumables and networking hardware. The segment’s profit before tax (PBT) rose 32.7% to RM28.9 million.

The ICT distribution segment reported an 18.3% increase in revenue to RM624.80 million, driven by strong demand for notebooks, smartphones and gaming devices, pushing PBT up 26.7% to RM9.9 million.

Its ICT services division recorded the highest revenue growth at 34.2%, reaching RM190.37 million, primarily led by strong performance in cloud and maintenance services, driving PBT up 25.6% to RM8.2 million.

VSTECS’ shares closed at RM3.41 on Wednesday, up one sen or 0.29%, valuing the group at RM1.23 billion.

Source from https://theedgemalaysia.com/