KUALA LUMPUR (Feb 27): VSTECS Bhd (KL:VSTECS) on Friday announced a special dividend and bonus issue after the information and communications technology distributor delivered another set of record quarterly results.
Net profit for the quarter ended Dec 31, 2025 (4QFY2025) jumped 60% to RM34.48 million from RM21.43 million a year earlier, driven by higher sales contributions from all three business segments — ICT distribution, enterprise systems and ICT services — as well as stronger contributions from its associate company.
Revenue for the quarter rose 33% year-on-year to a record RM1.09 billion, surpassing the RM1 billion mark for the first time, compared with RM819.2 million previously, according to the group’s exchange filing.
For the full year, VSTECS recorded a net profit of RM98.18 million, up nearly 40% from RM70.57 million in FY2024. Revenue rose 24% to RM3.6 billion from RM2.9 billion.
VSTECS proposed a special dividend of four sen per share, on top of a second interim dividend of four sen, both payable on May 19. With this, total dividends declared for FY2025 amount to 10.8 sen per share or a total of RM38.5 million, an increase of 40% comnpared with the payout in FY2024.
The group also proposed a bonus issue of up to 720 million new shares on the basis of two shares for every one share held, with the entitlement date to be announced later.
“The ramp-up of AI infrastructure, an accelerating device replacement cycle and rising cloud adoption are now unfolding simultaneously. We have anticipated this upcycle and have spent the past several years strengthening our vendor partnerships and fine-tuning our service capabilities to capture these opportunities,” chief executive officer JH Soong said in a statement.
In its outlook commentary, the group said ICT product prices are expected to increase due to higher memory costs, although demand for end-point devices is projected to remain strong into 2026. It noted that the market continues to be supported by the normal device replacement cycle and the rapid growth of AI-based applications, which require higher performance and upgraded hardware.
VSTECS also highlighted that Malaysian enterprises have been cautious in adopting AI, taking time to evaluate costs and returns, but expects 2026 to mark a turning point. Larger organisations are anticipated to transition from pilot projects to full-scale deployments, leveraging AI solutions to enhance productivity and decision-making.
The group added that government initiatives to expand IT and AI adoption in the public sector will create additional opportunities for enterprise solutions providers.
“With Malaysia firmly on a path to digitalisation, VSTECS has built a comprehensive business model at the intersection of global technology innovation and domestic market demand. We believe the current momentum is at an early stage and poised to accelerate further,” the group said.
VSTECS shares closed half a sen or 1.1% lower at RM4.48 on Friday, giving the group a market capitalisation of RM1.61 billion. The stock has gained nearly 10% year to date.
Source from https://theedgemalaysia.com/
