As the acceleration of enterprise digitization continues, data management plays a pivotal role across various domains. Data management, in essence, involves the efficient collection, storage, processing, and application of data using computer hardware and software technologies. Its aim is to extract valuable insights and information from raw data, ultimately enhancing the efficiency of business decision-making processes.

Just recently, Kronologi Asia Berhad (KRONO, 0176), a specialist in enterprise data management solutions, announced impressive financial results, showcasing sustained growth in revenue and profit. Without further ado, let's delve into KRONO's performance in the latest second quarter (Q2 FY2024).

Revenue Comparison (YoY +26.10%, QoQ +26.30%)

As of July 31, 2023, the company achieved approximately RM79.61 million in revenue, representing a remarkable 26.10% increase compared to the same period last year, when it was RM63.13 million. This surge can be primarily attributed to increased revenues from countries such as China and the Philippines.

Out of the RM79.61 million in revenue, approximately RM61.36 million originated from the Enterprise Data Management Infrastructure Technology business. This segment's revenue witnessed an approximate 28.58% year-on-year growth. The remaining RM18.24 million in revenue was generated from KRONO's Enterprise Data Management Services (EDM As-A-Service) business, which also experienced a year-on-year growth of approximately 18.41%.

In terms of geographic distribution, a significant portion of the revenue came from China, accounting for approximately 34.32% of the total revenue for the quarter, with a year-on-year growth of approximately 56.67% to around RM27.32 million. Following closely were Singapore and the Philippines, contributing approximately RM19.33 million and RM18.00 million in revenue for the quarter, respectively. However, Singapore's market revenue experienced a year-on-year decline of approximately 19.85%, while the Philippines saw an increase of around 26.40%.

Compared to the previous quarter, KRONO's revenue increased by approximately RM16.58 million or 26.30%.

Net Profit Comparison (YoY -1.93%, QoQ +19.21%)

Due to increased tax expenses, the company's net profit experienced a slight year-on-year decrease of approximately 1.93%, reaching around RM3.04 million. However, the company's pre-tax profit stood at approximately RM5.49 million, marking a growth of around 22.81% compared to the same period last year.

Fueled by robust business revenue, the company's net profit increased by approximately RM0.49 million or 19.21% compared to the previous quarter. This significant growth can be attributed to increased operational profit and improved gross profit margins.

Outlook

As artificial intelligence (AI) continues to proliferate, the demand for data management is expected to grow. Consequently, KRONO is prepared to address the rising demands of AI, the Internet of Things (IoT), and Radio-Frequency Identification (RFID). To achieve this, the company will employ a hybrid approach to data management, leveraging both on-premises and cloud-based data platforms, to deliver more efficient and intelligent As-A-Service products.

So, dear readers, what are your thoughts on KRONO, which currently boasts a price-to-earnings ratio of approximately 14.76 times?

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Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

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