KUALA LUMPUR (July 10): Kronologi Asia Bhd has set an ambitious target to double its revenue and triple its earnings before interest, tax, depreciation and amortisation (Ebitda) in the next three to five years, following record earnings for the latest financial year.

The ACE Market-listed data storage and cloud specialist intends to do that by focusing on recurring as-a-service revenue, rather than one-time infrastructure sales, its chief executive officer and executive director Edmond Tay said.

Kronologi is also seeking growth through a total addressable market expansion strategy, Tay added, pointing to China, where Kronologi’s business is currently seen as just “the tip of the iceberg” relative to the opportunities there, he said.

The group's enterprise data management (EDM) as a service contributed just 28.9% of group revenue, while EDM infrastructure technology made up the remaining balance of 71.1%.

The optimism also rides on a secular growth trend seen in data-driven digitalisation and hybrid cloud, as well as Kronologi’s recent strong performance despite Covid-19 disruptions.

In China, Kronologi invested in a 16.67% stake in digital infrastructure outfit Quantum China Ltd (QCL) for US$3 million (RM14.01 million) in 2018.

About two years ago, Kronologi acquired the remaining 83.33% stake in QCL for RM150 million via a 50:50 cash-plus-share deal, in a move to expand its sales, marketing and customer coverage footprint in the republic.

That market now contributed 27.7% of group revenue for the last financial year ended Jan 31, 2023 (FY2023), ahead of the Philippines (24.2%), and behind Singapore (34%), the main contributing market.

Kronologi's net profit rose 5.7% to RM25 million for FY2023, as revenue rose nearly 2% to RM314.24 million, while administration expenses fell 20% to RM15.3 million. Ebitda also rose 21% to RM57.37 million, from RM47.58 million for FY2022.

Meanwhile, for the first quarter ended April 30, 2023 (1QFY2024), net profit grew to RM2.55 million, from RM2.21 million a year ago, as revenue expanded to RM63.03 million, from RM57.33 million previously. Meanwhile, group Ebitda rose to RM11.47 million, from RM8.82 million for 1QFY2023.

Kronologi shares closed up two sen or 3.74% at 55.5 sen each on Monday (July 10), bringing the group a market capitalisation of RM411 million. Year to date, the group had gained 17% from 47.5 sen on Jan 3.