Quarterly Report For The Financial Period Ended 30 September 2024

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2024

Review of performance

Q3 FY2024 compared with Q3 FY2023

For Q3 FY2024, the revenue increased by 30.2% to RM841.8 million from RM646.4 million last year attributed to recovery in both consumer and enterprise product and new product launching. Accordingly, gross profit (GP) increased by 28.6% to RM48.9 million from RM38.1 million last year

Profit before tax (PBT) increased by 53.5% to RM26.5 million from RM17.3 million after accounting for lower impairment of financial instrument by RM845,000 and higher share of associate profit by RM452,000.

Quarterly Segmental Result

The performance of the three business segments for Q3 FY2024 compared with Q3 FY2023 were as follows:

1. ICT Distribution

   Revenue increased by 30.9% mainly from notebook, tablets, phone and printer. With higher sales but mitigated by lower GP margin, PBT increased by 17.6% to RM6.7 million compared with RM5.7 million last year.

2. Enterprise Systems

   Revenue increased by 32.2% across all major products. With higher sales and GP, PBT increased by RM6.0 million to RM13.7 million from RM7.7 million last year.

3. ICT Services

   Revenue increased by RM18.2 million, driven primarily by stronger sales in cloud services. With higher sales, PBT increased by 53.4% to RM4.1 million compared to RM2.7 million last year.

9 months ended 30 September 2024 compared with 30 September 2023

For 9 months FY2024, sales increased by 8.5% to RM2.08 billion compared with RM1.92 billion last year primarily driven by a strong rebound in both consumer and enterprise systems in Q324, effectively offsetting the sluggish market conditions in 1H2024. With higher sales, GP increased by 11.4% to RM124.4 million from RM111.7 million last year driven by higher GP margin resulting from the product mix.

PBT increased by 13.2% to RM65.5 million from RM57.9 million last year after recording higher net finance income by RM2.3 million and share of associate profit increased by RM427,000.

Year-to-date Segmental Result

The performance of the three business segments for 9 months period ended 30 September 2024 as compared to previous year-todate were as below:

1. ICT Distribution

   Revenue increased by 23.5% across all major products. However with higher operating expenses, PBT decreased by 8.2% to RM14.5 million compared with RM15.8 million last year

2. Enterprise Systems

   Revenue decreased by 6.2% due to lower sales of commercial notebook, PC, networking hardware and workstation. However with higher GP margin from product mix, PBT increased by 12.0% to RM35.5 million compared with RM31.7 million last year.

3. ICT Services

   Revenue increased by RM52.1 million, driven primarily by stronger sales in cloud services. With higher sales and GP, PBT increased by 50.7% to RM10.6 million as compared to RM7.0 million last year.

Prospects

Economic growth in Malaysia is gaining momentum. Estimates point to an elevated GDP growth in Q3 2024, prompting the Malaysian government to raise the full-year growth forecast to a range of 4.8% to 5.3%.

This positive trajectory is fuelled by a robust consumer sector, supported by Budget 2025's focus on increasing household incomes and stimulating key retail segments. A stronger Malaysian Ringgit and rising consumer demand are also expected to drive continued growth in ICT spending.

To further strengthen Malaysia's economic position, we welcome the federal government in revising datacentre investment incentives to ensure broader economic benefits to the local ICT sector, including optimizing tax structures and bolstering the local supply ecosystem for essential datacentre equipment and skilled technical resources

We are hopeful for the award of some larger public sector projects, which have been delayed since the beginning of the year.

With the growth potential in the consumer sector and year-end budget spending by enterprises, we are optimistic on Q4 and ending FY2024 on a high note.