OpenSys Hopeful of Its FY2022 Prospects

Financial services, telecommunications, and utilities solutions provider OpenSys (M) Berhad is buoyant on the Group’s prospects for the financial year ending 31 December 2022 (FY2022) as it expects to benefit from banks’ ongoing transformation and foresees take-up of new services.

The Group had recently secured an additional RM10.8 million Letter of Award from Bank Simpanan Nasional (BSN) to commission more units of Cash Recycling Machines (CRM), which cemented OpenSys’ CRM sector leadership with more than 80% market share nationwide.

OpenSys’ in-house Research and Development team has developed new solutions to generate new revenue streams, including secured delivery services (SmartCIT), online solar marketplace (buySolar), merchant acquiring services and e-wallet top-up kiosks (X-KIOSK). These complement the Group’s existing businesses of maintenance services for CRMs, bill payment and top-up kiosks, cheque processing and software development services which continue to enjoy high demand.

The highly recurring nature of OpenSys’ business model resulted in net profit maintaining at RM11.0 million for the financial year ended 31 December 2021 (FY2021) versus RM11.1 million previously, spurred by steady contributions from the solutions and services segment.

Revenue from the solutions and services segment increased 12.2% to RM55.3 million from RM49.3 million a year ago. Sales in the hardware segment slowed to RM6.2 million against RM33.1 million previously, which reduced total revenue by 25.4% to RM61.5 million from RM82.4 million a year ago.

Group revenue for the fourth quarter ended 31 December 2021 (4Q21) dipped 15.0% to RM18.0 million from RM21.2 million previously as banking customers temporarily delayed CRM purchases in view of COVID-19. Nonetheless, due to the favourable revenue mix of solutions and services segment, 4Q21 net profit dipped by only 9.8% to RM3.4 million against RM3.8 million previously.

OpenSys declared first interim dividend of 0.30 sen in respect of FY2022, which would be paid to shareholders on 15 March 2022, with the entitlement date on 7 March 2022.

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