VSTECS’ 2Q net profit up 31% on high product demand from enterprises

KUALA LUMPUR (Aug 23): VSTECS Bhd recorded a 31% increase in net profit to RM13 million in the second quarter ended June 30, 2022 (2QFY22), compared with RM9.89 million posted a year ago.

Quarterly revenue grew 25.6% to RM708 million against RM563.9 million achieved in the corresponding period of the preceding year, attributed to higher product demand in the Enterprise Systems Segment and ICT Services Segment, as enterprises continue to ramp up digitalisation efforts.

Earning per share rose to 3.60 sen from 2.80 sen a year ago, the company’s Bursa Malaysia filing showed.

In a separate statement, Chief Executive Officer of VSTECS, JH Soong said demand for IT products is expected to continue moving forward, as both public and private sectors are looking for data-driven, automated, and secure solutions in a cloud environment.

He added that the ICT Distribution segment has moderated this quarter, due to more conservative spending in the consumer IT space.

“However, a shorter replacement cycle for devices should continue to bolster this segment, moving forward. Aside from traditional channels, we are on the verge of launching several new and exciting digital platforms to enhance our distribution coverage and deepen our reach to consumers,” he further said.