Pentech eyes 40% recurring revenue contribution in three years


From left: Pentech Holdings Independent Non-Executive Director See Swee, Independent Non-Executive Director Lee Kooi Hoon, Non-Independent Executive Director Juleen Teh Sue Leen, Independent Non-Executive Chairman Mohamad Hashim Abdul Ghani, Managing Director cum CEO Yeoh Chin Ming, Public Investment Bank CEO Lee Yo-Hunn, Pentech Holdings Independent Non-Executive Director Lim Guan Chong and Non-Independent Executive Director Tan Hooi Bee

KUALA LUMPUR: Penang-based information and communication technology (ICT) solutions provider Pentech Holdings Bhd aims to achieve 40% recurring revenue and 60% from its non-recurring segment over the next three years.

Its chief executive officer and managing director Yeoh Chin Ming said its recurring revenue consists of managed services, cloud services and new services that the company aims to offer, such as artificial intelligence (AI) and cybersecurity services.

“We have always had one-time projects of our managed services. Following the handover of these projects, we actively encourage customers to subscribe to our managed services for the next one to three years, which will help increase our recurring revenue contribution towards the 40% target.

“We have also been providing cloud solutions services to our customers for the past eight years.

“We will continue to expand these services and reach out to more customers to strengthen our recurring business,” he told a press conference after the company’s listing ceremony here yesterday.

Pentech made its debut on the ACE Market of Bursa Malaysia at 29 sen for a premium of nine sen or 45% over its initial public offering of 20 sen, with 14.13 million shares traded.

At 5pm, the stock closed up six sen to 26 sen.

He said another factor that would contribute to the company is the rollout of new services, namely AI solutions, cybersecurity offerings and cybersecurity operations centre (SOC) services, which are slated to be introduced to the market this year.

Yeoh said the company has begun hiring personnel including engineers for its SOC located in Dutamas, Kuala Lumpur and the company is currently evaluating various technologies, solutions and business models before rolling them out to customers.

He added that Pentech is most likely to leverage on the emerging ICT adoption among banking financial services institutions – banking and logistics because these are the customers which have the deepest markets in Malaysia.

He also said the company is currently leveraging the healthcare industry as it progressively adopts ICT and AI.

He add that Pentech is actively in the process of adopting an international standard for information security management systems.

“This is to make sure we comply with audit standards and information security requirements, to ultimately build stronger confidence among our customers in our solutions,” he said.

On Malaysia’s ICT industry outlook for this year, he said the industry remains positive despite global economic headwinds as the ICT sector continues to grow.

“Even during the pandemic, ICT was one of the most widely used technologies and industries, and it was not significantly affected as it had become a necessity,” he said.

Pentech is involved in providing enterprise ICT solutions, which include integrating enterprise ICT infrastructure, supplying hardware and software, and provision of cloud, managed, and other services such as technical and digital transformation services, with approximately 20 years of operating history. — Bernama

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