KUALA LUMPUR: Vstecs Bhd
remains optimistic about its performance for the second quarter and the rest of FY2026, after its revenue surpassed the RM1bil mark in the first quarter ended March 31, 2026 (1Q26).
“We remain cautious of external headwinds, particularly the ongoing conflict in the Middle East, which may weigh on both the global and Malaysian economic outlook, as well as overall market confidence,” the information, communications and technology (ICT) company said in a filing with Bursa Malaysia.
“While the global economic outlook and Malaysian market confidence remain uncertain, demand for ICT products continues to be resilient. The group remains optimistic about the performance in the second quarter of FY2026 and for the remainder of the year.”
In the first quarter ended March 31, 2026, VSTECS posted a higher net profit of RM22.9mil, or earnings per share of 6.40 sen, compared with RM17.7mil, or 5.00 sen, a year earlier.
Quarterly revenue surged 51.4% to RM1.04bil from RM691.7mil previously.
“We started FY26 on a strong footing, and historically, our performance tends to gain further momentum as the year progresses. Our first quarter performance reflects the positive trajectory we are seeing for the year ahead,” CEO JH Soong said in a separate statement.
He said the key growth catalyst this year is expected to come from the enterprise systems segment, supported by continued public sector technology investments in line with Malaysia’s digital economy ambitions.
“Demand for AI-related data centre (DC) infrastructure is also gaining traction and we expect contributions from this segment to increase progressively moving forward as more DCs are commissioned.
“While there are temporary supply chain challenges arising from the global memory chip shortage, which caused some extended shipment lead times for server and storage equipment, the underlying demand remains healthy and our order pipeline continues to be encouraging,” he added.
Soong said the ICT Services segment is expected to benefit from rising enterprise deployments, which are driving demand for integration, maintenance and managed services, while cloud subscriptions continue to provide recurring revenue growth.
He noted that the ICT Distribution segment is expected to benefit from growing demand for connected devices and the rollout of next-generation AI-enabled consumer devices.
