VSTECS Bhd has posted a robust 24% year-on-year (YoY) jump in net profit to RM17.8 million for the first quarter ended March 31, 2025 (1Q25), driven by solid performance across all core business segments.

Revenue for the quarter also rose 12% YoY to RM691.7 million, reflecting broad-based growth in the company’s ICT Distribution, Enterprise Systems and ICT Services, a testament to continued momentum in digitalisation and accelerated adoption of cloud, artificial intelligence (AI) and next-generation technologies.

“This is our best first-quarter performance to date and signals a strong start to our financial year 2025 (FY25).

“We are riding on multiple growth vectors and benefiting from resilient ICT spending as digital transformation continues to reshape both public and private sectors,” Chief Executive Officer JH Soong said in a statement.

Soong shared that ICT Distribution grew 6% YoY, fuelled by strong shipment volumes, ongoing device replacement cycles, and new consumer device launches.

“Enterprise Systems revenue rose 11% YoY, supported by a revival in public sector IT projects and steady private sector demand, particularly in AI and data centre infrastructure.

“ICT Services led growth with a 37% YoY surge, reflecting rising demand for cloud solutions, technical integration and subscription-based support services,” he said.

Moving forward, Soong said the company expects momentum to continue into the coming quarters, underpinned by an expanding portfolio of endpoint technologies, broader channel coverage and increasing enterprise IT investments.

“The company is also positioning itself to tap into growing AI-related demand, offering flexible deployment models tailored to diverse enterprise budgets.

“With a healthy project pipeline and rising interest in cloud and AI-driven services, we’re confident in our ability to sustain this growth trajectory,” Soong added.

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