VSTECS Berhad for the full year ended 2022 recorded revenue and profit after tax increased by 5.5% and 8.5% to RM2.77 billion and RM59.7 million as compared to RM2.63 billion and RM55 million recorded in FY2021.
In 4Q FY2022, the group registered a revenue of RM683.2 million, a modest contraction of 10.5% compared to the preceding year’s corresponding period mainly due to lower consumer ICT spending. The ICT Distribution segment posted a 33.2% decrease in revenue to RM288.68 million. This was partially offset by the Enterprise Systems segment which continued its stellar performance, recording revenue of RM328.9 million representing an increase of 10.7% amid continuous upgrades of enterprise digital infrastructure. The Group’s ICT Services segment also continued its growth trajectory, with revenue increasing by 92.7% year-on-year to RM65.7 million.
The group’s 40% associate company, ISATEC Sdn Bhd, contributed RM3.0 million to PAT in FY2022, an increase of 38.1% as compared to FY2021. VSTECS also declared a second interim dividend of 3.7 sen per share, payable on 16 May 2023. To date, total dividends of 6.2 sen per share representing a payout ratio of 37% have been declared in respect of FY2022.
Chief Executive Officer of VSTECS, Mr. JH Soong commented: “The enterprise systems segment continued to deliver stellar results as organisations pursue new technologies and digital tools to improve operations, optimise customer experience, and generate new revenue streams. More public sector projects should come on stream in the coming months as the Government looks to strengthen the country’s digital ecosystem. The trends in enterprise ICT spending for 2023 will likely be shaped by emerging technologies such as cloud computing, artificial intelligence (AI), big data analytics, the Internet of Things (IoT), and cybersecurity to drive innovation and efficiency.
The global PC market faced a worldwide decline in 4Q2022, and we are experiencing a similar trend as consumers become more cautious of spending amid inflationary pressures and recessionary fears. International Data Corporation Malaysia (IDC) forecasted a growth rate of 3.5% in 2023 on the ICT products we are representing and we are cautious of the outlook on the consumer sector for 2023. Still, we expect this segment to sustain in 2023 as we secured certain fulfilment projects for the education sector.
