KUALA LUMPUR (Oct 24): Privasia Technology Bhd has clinched a RM42.09 million contract to provide information and communications technology (ICT) equipment rental services in school computer labs in Perlis, Kedah and Penang.

In a Bursa Malaysia filing, the group said its wholly owned unit Privasia Sdn Bhd accepted the contract from the Ministry of Education on Tuesday. The services are expected to comply with green requirements, and will be provided on a lease-to-use basis.

The contract is set to last for 65 months, with a commencement date of Oct 26, and is expected to contribute positively to the group’s earnings and net assets for the financial year ending Dec 31, 2023.

Privasia registered a net profit of RM598,000 for the second quarter ended June 30, 2023 (2QFY2023), versus RM1.38 million net loss a year earlier, as revenue grew more than four times to RM37.17 million from RM8.56 million, driven by satellite-based network services segment.

This brought its six-month net profit ended June 30, 2023 (6MFY2023) to RM1.55 million, compared to a net loss of RM2.73 million for 6MFY2022, while revenue climbed 202% to RM47.63 million from RM15.79 million.

“While the immediate near-term industry challenges are expected to persist, the group will continue to work towards developing a business model that provides new opportunities and revenue streams, while enhancing system-wide efficiency. The group will continue to tender for new projects moving forward.

“Despite various challenges, we will continue to deliver on our order book, with the current balance standing approximately at RM303.96 million. We will continue to persevere and meet the demands in the industry for any opportunities in the technology space to boost our future performance. We firmly believe that the market sentiment for digitalisation has not dwindled,” said Privasia, adding that the group is cautiously optimistic about its prospects for the rest of FY2023.

Privasia closed up half a sen or 5% at 10.5 sen on Tuesday, giving it a market capitalisation of RM61.54 million.