SNS Network Technology Bhd managing director Ko Yun Hung
PETALING JAYA: SNS Network Technology Bhd
is expected to continue to ride on the growing demand for information and communication technology (ICT) products and services, supported by the replacement cycle of devices and government initiatives.
In the third quarter ended Oct 31, 2024 (3QFY25), the group’s net profit jumped more than four times year-on-year (y-o-y) to RM10.2mil from RM2.02mil previously, translating to an earnings per share of 0.63 sen against 0.13 sen previously.
This was on the back of revenue that contracted 5% y-o-y to RM249.7mil in the quarter under review.
SNS Network declared a third interim single-tier dividend of 0.25 sen per ordinary share, which will be paid on Dec 30, 2024.
In a filing with Bursa Malaysia, SNS Network said the improved earnings was due to higher gross profit (GP) and GP margin for 3QFY25, primarily contributed by the commercial channel.
Meanwhile, the group’s lower revenue was due to a decrease in contribution from the education industry through the commercial channel, as the company secured major orders in the corresponding quarter.
However, SNS Network added that the said decrease was partially offset by the increase in revenue from the online store channel, because of higher demand from consumers as well as the increase in revenue from its physical store channel.
The latter was driven by revenue from the setting up of new physical stores.
For the nine-month period ended Oct 31, 2024, the group posted 7% y-o-y growth in its net profit to RM20.28mil.
Revenue, however, declined 13% y-o-y to RM767mil.
In a statement, SNS Network managing director Ko Yun Hung said ICT sales continue to significantly contribute to the group, making up 98.8% of its revenue in 9MFY25 and will remain to be a key segment.
“Beyond that, SNS Network is positioning ourselves to be an enabler of cloud computing and establish our footprint with graphics processing unit as-a-service (GPUaas) to support the cloud based artificial intelligence future,” he said.
Targeting enterprises and data centre clients, the ICT systems expert is expecting to roll out its GPUaas as early as 1Q25, to tap on the fast-growing segment and provide the scalable, high-performance computing access for workloads ranging from analytics to machine learning.
Ko said the group has committed RM16.77mil for artificial intelligence (AI) graphics processing unit servers as at end-October, with options to scale up as industry demand grows.
“Through this service, SNS Network supports AI adoption by providing the flexibility in the scale of access towards computing resources, and a faster time-to-market by accelerating intensive modelling and prototyping processes.
“The venture opens doors to a growth avenue for SNS Network, riding on the AI revolution that is steering digitalisation today as we expand and fine-tune our suite of services to cater more cloud-based solutions in line with industry needs,” he said.
