PETALING JAYA: MM Computer Systems Bhd (MMCS) sees the expanding national digital economy and widespread use of artificial intelligence (AI) in daily business operations as key drivers for its annual sales growth goal of 20%.
The information technology (IT) solutions provider, which is bound for listing on the ACE Market of Bursa Malaysia on June 11, is targeting about RM120mil in revenue by its financial year ending Dec 31, 2026 (FY26), a 20% increase from RM98.7mil in FY25.
It further aims to achieve an additional 20% growth in the subsequent year to reach a revenue of RM140mil to RM150mil.
Managing director and chief executive officer of MMCS, Young Yoong Chang, said increasing enterprise demand for agentic AI, due to their ability to streamline workflows across functions, coupled with government initiatives aimed at accelerating digital transformation such as MyDigital, presents significant growth opportunities for the company.
“Enterprises will need to upgrade or replace their existing servers, storage, networks, software, and equipment to prepare and integrate with AI solutions,” he told StarBiz.
“MMCS is well-positioned to capitalise on this trend in the coming three to five years.”
Through its subsidiaries Micro Technology Solution Sdn Bhd and SMIND Sdn Bhd, the group is principally involved in the design, implementation, and configuration of IT solutions, the provision of IT outsourcing services, and the sales and leasing of IT hardware and software.
The company’s initial public offering exercise (IPO) is expected to raise RM26.18mil from the public issue at 22 sen per share.
Application for MMCS’ IPO opened on May 11 and closed on May 25.
MMCS saw the retail portion of its IPO oversubscribed by 42.12 times.
The enterprise information technology solutions provider received a total of 15,363 applications for about 1.22 billion shares from the Malaysian public for the 28.35 million shares made available under the public portion.
For the bumiputra public portion, MMCS received an oversubscription rate of 24.81 times.
Meanwhile, for the non-bumiputra public portion, an oversubscription rate of 59.44 times was recorded.
A portion of the IPO proceeds will be utilised for the procurement of IT hardware and software, and RM3.1mil will go towards workforce expansion and development.
The remainder will be used for bank borrowing repayment and listing expenses.
The recruitment and training of personnel, Young noted, will be a key component to the group’s growth strategy.
“We plan to expand our technical team and our sales and marketing team, which will enable us to grow our customer base further,” he shared.
A larger and more specialised workforce is expected to help MMCS enhance its bid capacity for high-value tenders, strengthen project delivery, and boost pre-sales and after-sales capabilities.
“Furthermore, we intend to send our engineers for training and certifications authorised by our principals so that we are thoroughly equipped for an increasingly AI-based landscape.
”Among its segments, the design, implementation, and configuration of IT solutions and the provision of IT outsourcing services represent the group’s largest revenue contributors at 49.8% and 31.2%, respectively.
While the first segment is mainly project-based, the service-based IT outsourcing division largely runs on a recurring revenue model.
After the implementation of IT solutions, MMCS’ customers can then move to a maintenance service contract typically spanning three to five years, which includes software and hardware support, data backup and disaster recovery facilities, and IT infrastructure solution hosting.
“We are also able to provide help desk service, resident engineers, project management support, and regular monitoring of IT infrastructure,” he added.
The two segments, according to MMCS, will be the main focus for the company following the IPO, as they offer higher gross profit margins.
The group’s customer base mainly consists of government-linked companies (GLCs), enterprises, and large corporations, in addition to resellers.
According to Young, GLC customers make up nearly half of the company’s total revenue.
He noted that one of MMCS’ core strengths is in serving the GLC segment, as these companies often have wide and complex needs for IT solutions and require specialised technical support.
“Many of its GLCs’ customers have operations that are ‘mission critical’ to the nation’s economy and infrastructure and thus enforce stringent service level agreements,” he added.
“Our ability to serve this segment is a key differentiator for us, as are our maintenance services,” he said.
Post-listing, MMCS said it will seek to secure more projects from GLCs and enterprise customers.
Young said the company’s tender book currently stands at around RM127mil, while the company has about RM80mil of unrecognised revenue in its order book.
He added that around RM37mil from the order book should be recognised by end-FY26, with the remainder expected for recognition through to 2029.
