(From left) TechStore Bhd chief technology officer Petr Obsel, executive director Mohd Fadzil Mohd Daud, managing director Eugene Tan Hock Lim, chairman Datuk Ab Rahim Abu Bakar, M&A Equity Holdings Bhd managing director Datuk Bill Tan, M&A Securities Sdn Bhd corporate finance head Gary Ting and TechStore chief information officer Juraj Zidzik at the prospectus launch of TechStore in conjunction with its listing on the ACE Market of Bursa Malaysia.
PETALING JAYA: TechStore Bhd
is anticipated to see stronger revenue and core profit going forward, underpinned by an unbilled order book of RM104.7mil as at 2024, according to its business expansion plan and healthy industry outlook.
The company, which will be making its debut on the ACE Market of Bursa Malaysia on Feb 18, aims to raise RM25mil from its initial public offering.
TA Research in a report said the group plans to expand its business development team, which currently consists of only six personnel.
“The team will be segmented into smaller groups, each focused on developing projects for various end-user industries.
“The group intends to purchase additional equipment and information technology (IT) software to support its growth,” said the research house.
Techstore is principally involved in providing enterprise IT services, primarily focusing on IT security and automation solutions for various industries, including transportation, utilities, hospitality and logistics.Citing independent market research report prepared by Protégé Associates, TA Research said the enterprise IT services industry in Malaysia is estimated to grow from RM22.9bil in 2024 to RM28.8bil in 2028 at a compounded annual growth rate 5.6%, mainly driven by the ongoing digital transformation of the local economy.
“We estimate the group to record earnings growths of 5.2%, 7.4% and 13.5% to RM8.2mil, RM8.8mil and RM10mil for financial year 2024 (FY24), FY25 and FY26 respectively,” said the research house.
Given that Techstore has been awarded projects related to the Rapid Transit System link between Singapore and Malaysia, TA Research said the group intends to establish a branch office in Danga Bay, Johor Baru, to enhance the timeliness and efficiency of its services.
TA Research noted that Techstore’s revenue for FY22 jumped by 43.5% year-on-year (y-o-y) to RM42.2mil from RM29.4mil a year ago, mainly driven by higher revenue from the design and implementation services segment.
“As a result, the group’s core profit jumped 27.4% y-o-y to RM5.7mil from RM4.4mil a year ago.
“In the subsequent year, the group saw its revenue jump further by 47.4% y-o-y to RM62.2mil, thanks to higher contributions from both the design and implementation and maintenance and support services.”
In line with the revenue growth, TA Research said core profit surged by 38.1% y-o-y, reaching RM7.8mil.
