The share purchase raised Teo
KUALA LUMPUR: Kronologi Asia Bhd
, the No. 2 software stock performer in Asia, is banking on artificial intelligence for its next stage of growth as the company forecasts a record year for earnings.
The data management services provider sees technologies such as facial recognition systems as key to helping it win more contracts and is seeking mergers and acquisitions in the AI sector, acting group chief executive Philip Teo Chong Meng said in an interview on Thursday.
The company’s shares rose 3.1% as of 9:30 a.m. in Kuala Lumpur, compared with a 0.1% gain on the benchmark FTSE Bursa Malaysia KLCI Index.
“We are in talks, but they are still too preliminary to announce,” Teo said by phone from Singapore. “We want to value add to our services, and these could be as simple as alerts to complex facial recognition technology.”
Shares of Kuala Lumpur-based company have risen almost 280% in the past 12 months, outperforming all but one of its 172 peers in the region, Bloomberg data showed. Japan-based software developer Asgent Inc. sits in the top spot with a rally of more than 800%.
India is set to surpass Singapore as the top revenue generator for Kronologi in the next year, Teo said. The Indian government is planning 90 smart cities at a cost of 3.16 trillion rupees ($49 billion) to create jobs and drive economic growth. Kronologi’s unit in the South Asian nation won eight Smart City surveillance projects in two states last year.
Teo also sees growth potential from the Bollywood media and entertainment market, where demand for high-definition videos means huge volumes of data will be generated.
Kronologi’s net income in the first half was already more than 80% of earnings for the whole of 2016, Teo said. The surge in profit reflected the rise in demand for the company’s data management products -- sourced from San Jose-based Quantum Corp. -- in the wake of more prevalent cyberattacks such as the WannaCry ransomware.
WannaCry infected about 300,000 computers in 150 countries, locking users out unless they paid a ransom in bitcoin. Victims included the U.K.’s National Health Service, whose hospitals were disrupted, as well as FedEx Corp., Nissan Motor Co. and Renault.
“There wasn’t a knee-jerk reaction” in demand, Teo said. “But certainly the attacks have made businesses become more aware of our solutions.” - Bloomberg
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