KUALA LUMPUR (Aug 14): Technology products distributor VSTECS Bhd (KL:VSTECS) said its second quarter net profit fell 2.58% to RM15.25 million from RM15.65 million a year earlier, due to higher operating expenses and a lower fair value gain.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) dropped to 4.3 sen from 4.4 sen previously, VSTECS’ bourse filing showed.

Revenue increased 2.56% year-on-year to RM624.39 million from RM608.79 million, driven by a recovery in its consumer products despite fewer project deals from its enterprise systems segment.

VSTECS said the temporary slowdown in the segment was due to pending finalisation and implementation of several public sector contracts.

VSTECS chief executive officer JH Soong remained optimistic about the resumption of these projects in the coming months. Along with the robust performance of its ICT distribution and ICT service segments, Soong expects VSTECS to be well-positioned in the second half of FY2024.

“Moving ahead, we are committed to enhancing our portfolio in the data centre and AI space by onboarding more strategic brands from global technology leaders,” Soong said in a statement. “By introducing the latest and most advanced technologies to the Malaysian market, we aim to meet the evolving demands of our customers and drive sustainable growth.”

VSTECS did not declare any dividend for the quarter under review.

For the first half FY2024, VSTECS saw its net profit dropping 3.05% to RM29.57 million from RM30.50 million in the previous corresponding period, with revenue decreasing 2.57% to RM1.24 billion from RM1.27 billion.

VSTECS attributed the lacklustre performance to lower project sales, partially offset by consumer sales.

VSTECS shares rose 14 sen or 4.14% to RM3.52 on Wednesday, valuing the group at RM1.26 billion.