KUALA LUMPUR (Sept 27): Newly-listed SNS Network Technology Bhd has reported a 42.4% rise in net profit to RM8.81 million for the second quarter ended July 21, 2022 (2QFY23), compared to RM6.19 million in the immediate preceding quarter, on the back of higher revenue.
The company said revenue rose 19.7% to RM296.93 million, from RM248.16 million in 1QFY23, primarily driven by strong demand for its ICT products.
There are no comparative year-on-year figures, as the company was only listed on the ACE Market of Bursa Malaysia on Sept 2.
"We remain positive for the group's outlook, given the continuous growth in demand for ICT products, supported by rising economic activities and the strengthening of our existing customer base, together with expansion of market share,” SNS Network said in filing to the stock exchange.
"For the immediate future, we will continue to focus on the plans as announced in our prospectus, namely the expansion of our device-as-a-service (DaaS) business, the construction of a regional hub in Petaling Jaya, and the setting up of 10 new stores in the country," added managing director Ko Yun Hung in a statement.
Ko said the size of the DaaS market in Malaysia grew to RM376.17 million in 2021, from RM139.95 million in 2018, at a compounded annual growth rate (CAGR) of 39.04%.
SNS has allocated RM30.90 million from its recent IPO proceeds to purchase various types of devices to support the expansion of the DaaS subscription-based service.
The company has also allocated RM2.50 million to set-up eight new stores in the Klang Valley, one store in Johor Bahru and one store in Penang, to increase its customer base.
Ko said about RM18 million will be utilised to build the regional Hub in Petaling Jaya, comprising storage facility, experience centre for customers, live video areas, training centre, workshops and office facilities. The hub is expected to commence operations in January 2026.
SNS's shares closed 3.7% higher at 28 sen on Tuesday (Sept 27), giving the company a market value of RM443.51 million.
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