KUALA LUMPUR: Digital transformation solutions provider SRKK AI Bhd, which made its debut on Bursa Malaysia’s ACE Market in July, is seeking to build on its data analytics business.
First-half revenue from the data analytics segment has approached the amount generated in the full financial year 2025 (FY25).
The segment recorded RM2.8mil in revenue for the six months ended June 30 (1H26), compared with RM4mil in the preceding full year, its chief executive officer Yew Lip Sin said.
“The data analytics segment is seeing a healthy uptrend, with RM2.8mil revenue in 1H26 already making up some 70% or so of the RM4mil achieved in FY25.
We see this being developed further in Malaysia and Indonesia,” he told StarBiz.
Whether data analytics becomes large enough to lift group margins materially remains the more important test.
Yew said the group intends to expand data analytics and information technology (IT) managed services, which generally command higher margins than conventional hardware and software sales.
The data analytics segment is also part of a wider effort to increase recurring income.
Its contribution rose from 53% of group revenue in FY25 to 55% in the first quarter (1Q26) and 59% in 2Q26. It represented 57% of 1H26 revenue.
“Recurring revenue comes mainly from cloud services, and other segments like data analytics and business intelligence, IT managed services, and rental of hardware and software,” Yew said.
“Going forward, we will be looking into expanding the contributions from data analytics and IT managed services, which typically have higher margins,” he added.
The shift comes as SRKK seeks to reposition itself from a conventional IT integrator into a provider of artificial intelligence (AI), data and intelligent business transformation solutions.
“Three years ago, AI was a service offering within SRKK. Today, AI is becoming the operating system that runs across our business,” Yew said.
“We have grown from serving mainly small and medium enterprises to supporting more large enterprises, while expanding our customer base from about 1,300 to more than 1,600 organisations,” he noted.
Nevertheless, AI-enabled solutions contributed only 10.5% of FY25 revenue.
Their contribution increased from RM7.8mil in FY22 to RM11.8mil in FY25, indicating growth but also showing that the shift towards AI is still at an early stage.
Yew defined AI-enabled revenue as income from IT systems enhanced with AI capabilities to analyse large volumes of data, accelerate operations and support decision-making.
“Looking ahead, we see two growth engines. First, AI capabilities will continue to be integrated into existing customer environments.
“But very often, companies’ data sits in silos and needs to be digitised beforehand, and this is where our IT consulting and project implementation can play its part.
“The second route is to develop and sell our proprietary AI-enabled solutions.
“We are turning some of our customised applications into intellectual property products that can be licensed and sold to multiple businesses,” he added.
SRKK is placing those products under its OnePrism brand and expects to begin their rollout in early 2027.
“Right now, we have developed over 40 AI use cases as part of our catalogue, and are building a framework to rapidly deploy and govern our AI assets,” Yew said.
“Over time, we expect proprietary solutions and recurring AI services to become a larger proportion of our revenue mix, creating higher scalability and stronger margins,” he added.
The key question, however, is whether these AI applications can be scaled into standardised products sold to multiple customers, rather than being custom-built for each client – a model that is typically slower, harder to scale and less profitable.
While standardised products can typically be deployed more quickly and repeatedly, they generate recurring revenue and higher margins.
“Our long-term ambition is to transform SRKK from a services-led organisation into a services-and-platform company,” Yew said.
“We believe this combination creates a powerful growth model because it allows us to capture both project-based opportunities and scalable, recurring software value,” he added.
SRKK is also leveraging its longstanding relationship with Microsoft to reach customers. It holds all six Microsoft Solutions Partner designations and works with the technology company to develop and secure leads.
Yew elaborated that SRKK’s concentration on Microsoft is a strategic decision rather than a dependency.
