KUALA LUMPUR (Aug 28): Enterprise information technology solutions provider Vetece Holdings Bhd (KL:VTC), which debuted on the ACE Market on Wednesday with an opening share price of 50 sen — doubling that of its initial offering price (IPO) of 25 sen — said it is gearing up to leverage artificial intelligence (AI) and data centres to drive earnings growth.

“Our move into AI is a logical step, given our expertise in data management and integration. We foresee significant demand for AI-driven solutions that can harness and optimise data across various industries,” said Vetece non-independent executive director and chief executive officer Chan Wai Hoong at the company’s listing ceremony here.

Vetech plans to introduce AI-driven data handling and analytic solutions to complement its existing enterprise application integration and data engineering solutions. The group is primarily involved in providing data management, customer relationship management and system integration.

For this year, Chan said the group aims to expand its revenue base by further penetrating the Singapore market, which it views as a "critical stepping stone" in expanding its footprint across the Asia-Pacific region.

“Definitely, we can assure you that business opportunities and revenue will be significantly huge. We are already doing considerable work in Singapore, and while we cannot disclose too much, this will add substantial value to our revenue,” he added.

Vetece's overseas market, including Singapore, contributed 2.4% or RM371 million of its total revenue for the third financial quarter ended May 31, 2024 (3QFY2024) of RM15.44 million, with the majority of sales still originating from domestic customers (97.6% or RM15.07 million).

For the nine months ended May 31, 2024 (9MFY2024), Vetece recorded a net profit of RM1.51 million on revenue of RM6.87 million, mainly contributed by its implementation services and resale of hardware and software segment, which accounted for RM2.69 million.

Bullish on data centres

Vetece is optimistic about the growing data centre industry in Malaysia, which it views as a significant opportunity for future earnings growth.

“We are optimistic about the booming data centre sector. Our experience in data management and migration puts us in a strong position to help companies make the most of the new infrastructure,” Chan said.

Chan said the upcoming development of data centres, which he dubbed as 'Phase 3' — where cloud providers like Amazon, Alibaba and Microsoft Azure integrate their solutions — presents a lucrative opportunity for Vetece.

The company’s role in migrating data and applications to these centres is expected to drive substantial revenue growth, he noted.

“In fact, we have already completed projects involving the migration of data for Oracle applications from client premises (Vetece's technology partners) to data centres operated by international giants. We are also embarking on new projects in Singapore,” he said, declining to elaborate.

At Wednesday's noon market break, shares in Vetece settled at 45.5 sen, still up 20.5 sen or 82% from the IPO price, valuing the company at RM178.36 million.