SNS Network rides AI server boom with Main Market transfer

KUALA LUMPUR: SNS Network Technology Bhd is poised to ride the artificial intelligence (AI) server boom after its transfer to the Main Market of Bursa Malaysia.

The company’s managing director Ko Yun Hung is optimistic about the its business outlook over the next few years amid growing demand for AI super servers from several technology firms.

“With more data centres being set up in the country, especially in Cyberjaya, Kuala Lumpur and Johor, we foresee the demand for AI super servers will continue to be strong in the next few years,” he added.

Although not involved in data centre construction, SNS Network is active in AI hardware deployment, AI enterprise services and related professional services.

In short, the information and communications technology (ICT) system and solutions provider fills the gap between server manufacturers and server buyers.

“Looking ahead, the future for SNS Network is bright and diverse. We do recognise that the commercial channel remains the largest contributor to our revenues at over 80% in the last financial year ended 31 January 2024 (FY24),” said Ko.

Additionally, he is bullish about the retail market, with demand driven by digital transformations as well as AI adoption which is expected to be robust, paving the way for the group to keep its plans of opening retail stores across Malaysia intact.

“These will add on to our 60 brand stores, seven multi-brand concept stores and 12 consignment counters,” he revealed.

As of today, SNS Network has officially transferred its entire issued share capital of 1.61 billion shares from the ACE Market to the Main Market, marking the completion of its transfer listing.

Established in 1998 in Ipoh as a company that assembled and supplied desktop and related peripherals primarily to schools and cyber cafés, SNS Network has transformed into an ICT system and solutions provider with an annual revenue that has surpassed the RM1bil since its listing.

The company was listed on the ACE Market of Bursa Securities on Sept 2, 2022, and has posted steady net profit growth which enabled it to declare and distribute consistent dividends to shareholders since Dec that year.

For FY23 and FY24, the group’s dividend payout ratio represented 9.2% and 37.8% of its net profits.

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