The financial services, telecommunications, and utilities solutions provider, OpenSys reported a 24.3% rise in revenue in the second quarter ended 30 June 2022 (2Q22) to RM18.2 million from RM14.7 million in the previous corresponding quarter, driven by all-round growth across segments.
Banks have begun to resume procurement activities to replace aged and obsolete equipment due to compliance and customer service predicaments caused by aging machines after nearly 2 years of postponement -this has prompted the 295.0% increase in hardware segment revenue to RM2.5 million in 2Q22, from RM0.6 million previously.
Meanwhile, revenue from the solutions and services segment also grew by a steady 12.2% to RM15.8 million versus RM14.0 million previously. This is contributed by the Group’s maintenance services for CRMs, bill payment and top up kiosks, cash in transit services, cheque processing and software development services.
The commendable performance in both segments led to the Group reported 6.7% increase in group net profit to RM3.0 million in 2Q22, from RM2.8 million a year ago.
For the first half of the year ended 30 June 2022, group revenue and net profit stood at RM35.6 million and RM5.4 million, an increase of 24.3% from RM28.6 million and 16.9% from RM4.6 million, respectively.
As a continuation of its dividend policy, the Group declared a third interim dividend of 0.40 sen per share for the financial year ending 31 December 2022.
Altogether with the first and second interim dividends of 0.30 sen and 0.30 sen per share paid on 15 March 2022 and 16 June 2022, respectively, the Group has declared a total dividend of 1.00 sen per share in respect of FY2022.
“We are riding the improved market sentiment, with our CRM sales recording better-than-expected sales for three consecutive quarters in 4Q2021, 1Q2022, and 2Q22, indicating a stable recovery of this segment. We are positive about the long-term outlook of the CRM business segment as there is potentially a huge market of another 10,000 single-function cash machines that could be replaced with dual-function CRMs. As the market leader with more than 80% share currently, we are buoyant of capturing this potential demand,” Mr. Eric Lim, Chief Executive Officer of OpenSys (M) Berhad said.
“Furthermore, OpenSys had obtained approval from the Securities Commission on 26 July 2022 for the proposed transfer listing from the ACE Market to the Main Market of Bursa Malaysia Securities Berhad,” he added.
OpenSys had fulfilled the requirement of achieving a minimum cumulative net profit of RM20 million in the past three years, despite the impact of the Covid-19 pandemic and subsequent movement control orders.
“The proposed transfer is expected to enhance the Group’s stature and reputation with greater recognition amongst investors, particularly institutional investors. In addition, the transfer will promote better corporate image leading to greater confidence with clients, business partners, suppliers, shareholders and employees,” he stressed.