KUALA LUMPUR (Dec 10): SNS Network Technology Bhd (KL:SNS) has reported a five-fold rise in its third quarter net profit to RM10.2 million from RM2.02 million a year earlier, on improved margins and sales in both online and physical store channels amid higher demand for its information and communications technology (ICT) products.

Earnings per share for the quarter ended Oct 31, 2024 (3QFY2025) jumped to 0.63 sen from 0.13 sen previously, according to the group's stock exchange filing.

Gross margins grew to 11.3% from 7.4%, offsetting a 5.16% dip in revenue, which fell to RM249.71 million from RM263.29 million in 3QFY2024, primarily due to the absence of a major order from the education industry that had boosted revenue in the previous year.

SNS Network did not declare a dividend for the quarter.

For the first nine months of FY2025, the group's net profit increased 7.16% year-on-year to RM20.28 million or 1.26 sen per share, from RM18.93 million or 1.17 sen per share. However, revenue for the period fell 13.4% to RM767 million from RM886 million.

SNS Network managing director Ko Yun Hung said ICT sales, which accounted for 98.8% of the group’s revenue during the nine-month period, will continue to be a key segment.

In addition, the group is positioning itself as an enabler of cloud computing and aims to establish its footprint with Graphics Processing Unit as a Service (GPUaaS) to support the future of cloud-based artificial intelligence (AI).

Targeting enterprises and data centre clients, the ICT systems expert plans to roll out GPUaaS as early as the first quarter of 2025 to tap into the fast-growing segment. The service will provide scalable, high-performance computing access for workloads ranging from analytics to machine learning, Ko said in a statement.

He said SNS Network had committed RM16.77 million for AI GPU servers as at end-October, with options to scale up as industry demand grows.

“Through this service, SNS Network supports AI adoption by providing the flexibility in the scale of access towards computing resources, and a faster time-to-market by accelerating intensive modelling and prototyping processes.

“The venture opens doors to a growth avenue for SNS Network, riding on the AI revolution that is steering digitalisation today as we expand and fine-tune our suite of services to cater more cloud-based solutions in line with industry needs,” he added.

Shares of SNS Network gained half a sen or 0.88% to close at 57 sen on Tuesday, giving the group a market capitalisation of RM915.5 million. The counter has risen over 137% since the start of this year.