KUALA LUMPUR (June 11): Home-grown enterprise IT solutions provider MM Computer Systems Bhd (KL:MMCS) said it does not expect rising global IT hardware costs caused by supply chain disruptions to squeeze its profit margins, as it is able to pass higher costs on to customers.
Prices of key components such as RAM and storage devices have risen amid supply shortages linked to the Middle East conflict, managing director and chief executive officer Young Yoong Chang told reporters after the company's debut on Bursa Malaysia's ACE Market on Thursday.
"So far, supply chain disruptions from the Middle East conflict have pushed up RAM and hard disk prices globally. When we quote to major customers in Malaysia, they are already aware that pricing is slightly higher," Young said.
He added that MMCS' scale and longstanding relationships with distributors have enabled the company to secure component supply and fulfill delivery commitments despite industry-wide shortages.
The company posted a net profit of RM3.03 million on a revenue of RM29.82 million for the first quarter ended March 31, 2026.
MMCS debuted at 22 sen per share, unchanged from its initial public offering (IPO) price, giving it a market capitalisation of RM124.7 million. The IPO raised RM36.2 million, which will be used to procure IT hardware and software, expand its workforce, repay borrowings and cover listing expenses.
Nearly half of MMCS' customers are government-linked companies (GLCs), primarily in the utilities, transportation, highway and pension sectors. The group is seeking to reduce its reliance on the public sector by broadening its customer base.
Its customer count rose to 194 in the financial year ended Dec 31, 2025 (FY2025) from 137 in FY2022. Following its listing, the company is targeting about 200 customers, excluding a major unnamed client and GLCs such as Koperasi Angkatan Tentera Malaysia Bhd.
On potential data centre contracts, Young said: "We're looking into it, but we haven't had any successful deal yet."
He noted that data centre projects typically require between six months and two years of negotiations before contracts are awarded.
Looking ahead, MMCS expects growing enterprise adoption of artificial intelligence technologies to support demand for its products and services.
MMCS shares closed 0.5 sen or 2.27% higher at 22.5 sen on Thursday, with 125.12 million shares traded.
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