KUALA LUMPUR (May 17): Information and communications technology (ICT) distributor VSTECS Bhd’s net profit increased 24.95% to RM14.85 million in the first quarter ended March 31, 2023 (1QFY2023) from RM11.88 million posted a year ago.

Quarterly revenue grew 3.25% to RM664.74 million in 1QFY2023 from RM643.76 million a year ago, its bourse filing showed.

The group said the positive result was mainly attributed to higher profit margin contribution from its enterprise systems and ICT services segments.

Earnings per share rose 4.2 sen, from 3.3 sen per share a year before, while no dividend was declared by the company during the quarter.

On its prospects, the group foresees that the demand for consumer products will continue to slow, while the weakening buying trend may continue for the next few quarters.

The enterprise sector, on the other hand, will continue to demonstrate remarkable resilience and strength with many opportunities from cloud services and data centres.

“We continue to work on large project opportunities from the government-linked companies (GLC) and the public sector.

“While we are cautious on the consumer sector, the outlook for the enterprise sector continues to remain strong for the second quarter of 2023 (2QFY2023) and the balance of the financial year of 2023 (FY2023),” it said.

In a separate filing, the group announced the redesignation of Datuk Khoo Sin Aik, 61, as the new senior independent and non-executive director, from his previous post as independent and non-executive director, effective Wednesday (May 17).

Khoo’s redesignation came after the retirement of Wong Heng Chong, 73, as the group’s independent and non-executive director.

“Khoo has more than 30 years of experience in the IT industry. He has served in various capacities in public and private sector organisations such as the National Tech Association of Malaysia (PIKOM), Patimas Computers Bhd, Malaysia Digital Economy Corporation Sdn Bhd (MDEC), WCIT 2008 Sdn Bhd and WITSA," it said.

Shares price of VSTECS closed up two sen or 1.47% at RM1.38, giving it a market capitalisation of RM496.8 million.