KUALA LUMPUR (March 27): Ipoh-based ICT solutions provider SNS Network Technology Bhd's (KL:SNS) net profit halved to RM5.07 million for the fourth quarter ended Jan 31, 2026 (4QFY2026) from RM10.02 million a year ago, despite posting higher revenue.

The weaker earnings, it said, were due to higher selling and distribution expenses, mainly attributable to increases in staff costs and commissions paid to third-party online marketplaces.

Additionally, the group recorded higher general and administrative expenses, due to higher depreciation of property, plant and equipment as well as impairment losses on financial assets, said the group in a bourse filing on Friday.

Selling and distribution expenses increased 6.3% year-on-year to RM15.03 million from RM14.14 million, while general and administrative expenses swelled 78.4% to RM11.09 million from RM6.21 million.

SNS booked an impairment loss on financial assets of RM7.6 million for the quarter.

Quarterly revenue, however, rose 52.5% to RM383.54 million from RM251.51 million in 4QFY2025.

The group declared a fourth interim dividend of 0.25 sen per share, payable on May 26. This bring its dividends for FY2026 to one sen per share, higher than 0.87 sen paid in FY2025.

For FY2026 as a whole, SNS’ net profit increased 51.7% to a record of RM45.97 million, from RM30.3 million in FY2025. Revenue breached the RM3 billion mark for the first time, reaching RM3.34 billion, a more than threefold increase from RM1.02 billion previously.

Listed in 2022, SNS has two business segments: the sale of ICT products (and the provision of device repair and related services) and the sale of broadband services.

Looking ahead, the group remains optimistic about the ICT industry’s outlook, supported by the rapid advancement of artificial intelligence (AI) technologies.

This continued evolution is expected to drive stronger demand for ICT products and services, reinforce the group’s existing customer base, and create opportunities to expand market share by acquiring new clientele, it added.

The group said it provides AI-driven solutions aimed at enhancing operational efficiency and delivering personalised customer experiences.

SNS’ AI factory — which the group claims is the country’s first locally hosted, fully managed AI cloud infrastructure — is located at Telekom Malaysia Bhd’s (KL:TM) Klang Valley Data Centre facility in Cyberjaya.

On Friday, SNS Network’s share price closed down one sen or 2.35% at 41.5 sen, giving the group a market capitalisation of RM695 million.