KUALA LUMPUR (June 23): ICT Zone Asia Bhd (KL:ICTZONE) posted a 34.6% increase in net profit for the first quarter ended April 30, 2026 (1QFY2027), driven by strong growth in its ICT hardware and software trading business and continued expansion of its technology financing segment.

Net profit for the quarter rose to RM4.49 million from RM3.33 million a year earlier, while revenue more than doubled to a record RM100.3 million from RM41.6 million, marking the group's first quarter with revenue exceeding RM100 million.

For the quarter under review, the company paid an interim dividend of 0.2 sen per share, amounting to about RM1.6 million on May 4, compared with no dividend declared in the corresponding quarter a year earlier.

The strong top-line performance was largely attributable to its ICT hardware and software trading segment, which recorded revenue of RM72.3 million, compared with RM17.5 million in the corresponding quarter last year, following additional orders and contracts secured from corporate and government customers.

Meanwhile, the group's core technology financing business grew 22.7% year-on-year to RM26.9 million.

Gross profit rose 19.4% to RM10.1 million, although gross profit margin narrowed to 10.1% from 20.4% a year earlier due to the higher contribution from the lower-margin trading segment.

As at end-April, ICT Zone's unbilled order book stood at RM280.7 million, with RM275.7 million, or about 98%, derived from its technology financing segment.

The group expects RM84.4 million of the order book to be recognised over the remaining nine months of FY2027, with the balance extending into subsequent financial periods.

Managing director and chief executive officer Tommy Lim in a statement said the group's focus remains on expanding its recurring, contract-backed technology financing business.

"Technology financing is where we want the group's weight to sit — it is recurring and carries the margins that matter to us," he said.

Looking ahead, ICT Zone said it remains cautiously optimistic, supported by growing adoption of subscription-based ICT procurement across both the public and private sectors, increasing demand for artificial intelligence-capable (AI) devices, the impending end of support for Windows 10, and Malaysia's push to develop AI infrastructure.

Shares of ICT Zone closed half a sen higher or 2.86% at 18 sen, valuing the company at RM143.18 million. Over the past one year, the stock has gained 6.1%.