What happened to VSTECS share price which hit LIMIT UP? Check out the possible reasons below.

VSTECS Berhad (VSTECS) witnessed a surge of 20-30% in its share price following the announcement of its distributorship deal with Amazon Web Services (AWS). This astronomical rise can be attributed to several factors:

1. Expanding Cloud Portfolio: VSTECS traditionally distributes IT hardware and software. Partnering with AWS, the world's leading cloud service provider, grants them access to a high-growth market. Cloud spending is expected to continue its exponential rise in Malaysia, and VSTECS is now positioned to capitalize on this trend.

2. Recurring Revenue Stream: Cloud services are typically delivered through subscription models, generating recurring revenue for VSTECS. This predictability is highly attractive to investors, boosting VSTECS's value proposition.

3. Increased Visibility and Credibility: The AWS partnership validates VSTECS's expertise and strengthens its brand image. This association with a dominant industry player can attract new clients and solidify VSTECS's position in the Malaysian ICT market.

4. Potential for Upselling Services: By offering AWS alongside existing hardware and software solutions, VSTECS can create comprehensive cloud packages for clients. This bundling approach can lead to higher margins and additional revenue streams.

5. Gateway to New Markets: VSTECS's reach may extend beyond Malaysia. AWS's global presence could open doors for VSTECS to participate in regional cloud projects, further propelling its growth.

While the long-term impact remains to be seen, the immediate surge reflects investor confidence in VSTECS's ability to leverage this strategic partnership and become a major player in Malaysia's burgeoning cloud market.

You can go to these websites to read the news on the deal.

VSTECS top gainer on stock market after being named country's first AWS distributor

VSTECS shares hit new record high on Amazon Web Services partnership (theedgemalaysia.com)

Sentral REIT, Vstecs, Dufu Tech, MNRB, Mega First, Ivory Properties, Paragon Globe and Sarawak Cable (theedgemalaysia.com)