FSBM Holdings Bhd managing director Pang Kiew Kun (left) and FSBM finance director Wong Jing Kai at the press conference after the company’s AGM on Tuesday. (Photo by Low Yen Yeing/The Edge)

KUALA LUMPUR (June 25): IT company FSBM Holdings Bhd (KL:FSBM) expects its earnings for the current financial year to outperform the previous year, on the back of rising demand for its products and services.

FSBM focuses on artificial intelligence-driven solutions, Internet of Things (IOT) integration, and cybersecurity, which position the company to tap into the current rising demand, its managing director Pang Kiew Kun said. FSBM is also working with a Taiwanese firm to sell and service voltage sag protectors, he noted.

“We are a software-based company; once we install the products, we can provide added value to customers by providing data analysis such as monitoring the energy consumption for factories,” Pang told reporters after the company’s annual general meeting (AGM) on Tuesday.

For the financial year ended December 2023 (FY2023), FSBM reported a net profit of RM1.94 million, on the back of RM12.84 in revenue. The company kicked off FY2024 with an over three-time jump in net profit to RM654,000 in the first quarter ended March 31, 2024 (1QFY2024).

Since then, FSBM exited the Practice Note 17 (PN17), a status for financially-distressed companies, last Friday (June 21), after fixing its conditions. The company has also signed an exclusive agency contract with T-Parus Trading Co, Ltd to sell and service its voltage sag protector.

The company is working with two semiconductor companies based in Penang to test out the voltage sag protector and system, Pang said.

FSBM slipped into PN17 on Dec 30, 2019, after its external auditor Moore Stephens PLT flagged its financial statements for the financial year ended June 30, 2018 (FY2018) for insufficient appropriate evidence to provide a basis for an audit opinion.

Moore Stephens also noted that FSBM’s financial statements were prepared on the assumption that the group would continue to operate as a going concern while the company was incurring a net loss of RM4.66 million for FY2018. The company changed its financial year in 2019.

At 3.15pm on Tuesday, FSBM’s share price went up 1.5 sen or 4.5% to 34.5 sen, bringing the group a market capitalisation of RM170 million.