VSTECS BERHAD
KLSE (MYR): VSTECS (5162)
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Last Price
3.77
Today's Change
-0.05 (1.31%)
Day's Change
3.72 - 3.85
Trading Volume
324,900
Meeting
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Discussions
12 people like this. Showing 50 of 2,520 comments
We expect a stronger 2H24, boosted by higher contributions from VMware, along with
new revenue from Google Pixel and AWS cloud services, as well as shipments of AI
related DC equipment. The stock will also benefit from Budget 2025, which allocates
significant funds to promote digitalisation in Malaysia. A key inflection point may occur
with the government’s rollout of new DC incentives, which could potentially
supercharge VSTECS’ growth by unlocking its TAM. Maintain BUY. Target price:
RM5.02.
WHAT’S NEW
Expect a stronger 2H24. Recall that VSTECS reported a core net profit of RM29.4m (-4%
yoy), accounting for only 40% of our full-year estimate due to the slower rollout of public
sector projects in 1H24. Despite this, there was notable growth in the ICT distribution
segment (+19% yoy) in 1H24, driven by the strong uptake of Starlink (thousands of units
monthly) and a resurgence in PC demand indicating the start of the replacement cycle for
devices bought during the pandemic. We expect earnings to catch up in 2H24, supported by:
a) the rollout of Google Pixel in Aug 24, with thousands of units delivered since Sep 24, b)
new AWS cloud service contributions following its data centre (DC) launch in Aug 24, c)
increased contribution from VMWARE under a new agreement (doubling effect), d)
shipments of AI-related DC equipment in 3Q24, e) steady adoption of Starlink with the
potential rollout of Starlink Mini in 4Q24, and f) seasonally stronger consumer and enterprise
spending in 2H24.
New DC incentives: A strategic inflection point. The Malaysian government is currently
restructuring its incentive packages for DC investments to prioritise high-value activities that
bring broader economic benefits. Treasury Secretary General Datuk Johan Mahmood
Merican highlighted concerns that while DCs involve significant capex, they often do not
create enough high-skilled jobs and can strain electricity and water resources. To address
this, the government will introduce a new investment incentive framework by mid-25, using a
“scorecard” approach to assess projects based on factors like job creation, local business
linkages, sustainability, and alignment with strategic economic sectors. These incentives will
be backed by a RM1b strategic fund designed to cultivate local talent and promote high-value
activities in the E&E and AI sectors, ensuring long-term economic benefits. We believe this
could be an inflection point for VSTECS, as it will further accelerate its DC equipment and
GPU server deals by multiple folds, growing from the current tens of millions of ringgit.
Beneficiary of Budget 2025. While details remain sketchy, VSTECS stands to benefit
significantly from Budget 2025, which allocates substantial funds from both the Ministry of
Education (MoE) and the Ministry of Digital to enhance digitalisation and internet coverage
across Malaysia. The MoE's record allocation of RM64.1b includes RM635m for
infrastructure upgrades and expanded internet access in public universities, as well as
RM270m for improving internet coverage in higher education institutes, rural schools, and AI
education initiatives. Meanwhile, the Ministry of Digital is set to receive RM1.3b to promote
the digital economy, alongside capital allowances for e-invoicing implementation that
encompass ICT equipment and software purchases.
2 weeks ago
Vstecs + starlink + Elon Musk in White house = control the world technogy !
1 week ago
Yes , it definitely will within 5 years ! More SBB more EPS more higher share price ! Be patience and u will be paid later
1 week ago
Dow falls more than 350 points, retreating from record as postelection rally takes breather
1 week ago
why posting dow jones crap here? it's a rubbish index even in the US. Nvidia with market cap 3T USD just entered the index few days ago and has like only 2% in the dow just tell how useless the index is. lol
1 week ago
Amazing results! Quarter to Quarter shot up 28%! Better than KGB
For Q3 FY2024, the revenue increased by 30.2% to RM841.8 million from RM646.4 million last year attributed to recovery in both consumer and enterprise product and new product launching. Accordingly, gross profit (GP) increased by 28.6% to RM48.9 million from RM38.1 million last year.
Profit before tax (PBT) increased by 53.5% to RM26.5 million from RM17.3 million after accounting for lower impairment of
financial instrument by RM845,000 and higher share of associate profit by RM452,000
1 week ago
Feb got 1 more dividen around 4 - 5 sens , total around 7 sens per year dam dam masuk pocket !
1 week ago
Be stand by for partnership with Nvidia Black well announcement !
Who sell who bodoh ! Vstecs possible really hit rm 50 in future !
1 week ago
I think u are the person who want to buy cheap ticket later not the smart investors who already parked their heavy capital in vstecs before it surge ! 🤣🤣🤣
6 days ago
We all shareholders should recommend Mr Song to increase profit margin even a bit than their qr np will hit rm 30m atleast and dividen can hit 10 sen per annual !
6 days ago
I hope when share price hit rm 6 - 11 , u all will know in bursa u can only trust jepun ! Btw , u all should all in ranhill ,it will hit rm 5 !
6 days ago
Bull stage 2 = rm 6
Bull stage 3 = rm 11
Bull stage 4 = rm 50 (a stage u must take profit immediately and stay sideline )
2 days ago
Russia says its air defenses shot down five of the six missiles in the first such attack by Ukraine
2 days ago
https://www.klsescreener.com/v2/news/view/1428251
How many ICT products they will purchase from vstecs > 5000 selling channel ???
1 day ago
mf
Russia says its air defenses shot down five of the six missiles in the first such attack by Ukraine
==
and the russian men also shagged your mom
1 day ago
diuleiloumei
Congrat to those selling today, you may collect back cheaper soon
5 days ago
==
thats why stock is not for you. You're obsessed about diaoing your mama only 🤣
1 day ago
Had anxious moments when price fell below RM3 from Rm 4.27. Thank God now recovered a bit. Jepun confident it will hit Rm6, lets hope it is true. For Ranhill to touch RM 5, notice it struggles at around 1.30 area. Anyway YtlPower still in Doldrums while VsTecs has recovered steadily. Will it, VsTecs go up when NVidia goes up ?
1 day ago
True or false not decided by me ! I only know vstecs has big partner coming soon n robust np starts from now !
1 day ago
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
NatsukoMishima
PETALING JAYA: Kenanga Research anticipates a rise in demand for cloud services as global cloud service providers (CSPs) continue to invest heavily in data centres, cloud and artificial intelligence (AI) infrastructure in Malaysia.
The research house said it believes players involved in various roles within the cloud industry such as CSPs, distributors for global CSPs, managed-cloud service providers, software vendors and system integrators, stand to benefit.
Among the beneficiaries include Telekom Malaysia Bhd, Maxis Bhd, CelcomDigi Bhd, OCK Group Bhd, as well as TIME Dotcom Bhd, Dagang Nexchange Bhd, Vstecs Bhd and SNS Network Technology Bhd.
2 weeks ago