KUALA LUMPUR (July 1): E-services provider Pertama Digital Bhd (KL:PERTAMA) is optimistic about turning profitable in the financial year ending Dec 31, 2025 (FY2025), following its acquisition of D-Ron Singapore Pte Ltd (D-Ron SG) and D-Ron Malaysia Sdn Bhd (D-Ron MY).

It based its optimism on the profit guarantee of RM32.4 million from D-Ron SG and D-Ron MY across FY2025 and FY2026.

"We are confident because that's an average of RM16-17 million a year, right, in terms of net profit," the company’s CEO Lim Nasrul Halim told reporters on Tuesday.

“We are confident [to turn around].  I think it will be very healthy for Pertama Digital in years to come," he added during the company's briefing on its acquisition of D-Ron and regularisation plan.

The company, formerly known as Sinotop Holdings Bhd, has been loss-making from FY2021 to FY2024.

It reported a net loss of RM13.67 million in FY2021, RM39 million in FY2022, RM6.6 million in FY2023 and RM512,000 in FY2024.

The acquisition of D-Ron presents an opportunity for Pertama Digital, especially after the government passed the Malaysian Border Control and Protection Agency (AKPS) bill, also known as the single border agency, last year to strengthen border control.

D-Ron Sg and D-Ron Malaysia specialise in information technology and surveillance hardware distribution, as well as related services in Singapore and Malaysia. Their offerings include surveillance solutions such as video surveillance systems, surveillance cameras, video management systems, video analytics, access control and information technology network support.

Pertama Digital acquired an 80% equity interest in both companies for RM106.12 million.

When asked about acquiring the remaining 20% stake, non-independent non-executive chairman Datuk Ahmad Nazri Abdullah said, “We are not interested in owning 100%".

The RM105.6 million acquisition is being funded through internal borrowings and/or shareholder advances. As at March 31, 2025, the company had total cash of RM194.9 million, comprising RM166.59 million in Islamic trustee funds, RM258,000 in fixed deposits with licensed banks and RM28.06 million in cash and bank balances.

The company will submit its regularisation plan by the extended deadline of Oct 31, 2025, granted by Bursa Malaysia, though it may file the plan earlier. "While we're not waiting for the deadline, I think we are in a very good position to submit early so that we can start to regularise ourselves," said Lim. "I think D-RON is a very key component to that plan."

In August last year, Pertama Digital triggered paragraph 8.03A(2)(a)(b) of the Main Market Listing Requirements after selling its China-based textile subsidiary Be Top Group Ltd for RM70 million, with the aim of becoming a pure-play digital services provider.

The paragraph stipulates that a listed issuer may not have a level of operations that is adequate to warrant continued trading or listing if it has an insignificant business or operations.

The company's shares closed unchanged at 10.5 sen, valuing the company at RM46 million. The counter has fallen 46.15% year-to-date.