KUALA LUMPUR (Sept 29): SNS Network Technology Bhd's (KL:SNS) second-quarter net profit declined 37.3%, weighed down by lower sales and higher expenses.
The ICT solutions provider also saw its revenue slashed by half as supplier-side shortages hampered on-time delivery to customers — a trend also observed in the previous quarter (1QFY2027).
Net profit for the quarter ended July 31, 2026 (2QFY2027) fell to RM12.9 million, or 0.76 sen per share from RM20.6 million, or 1.23 sen per share a year earlier. Revenue declined 54.2% to RM801.78 million from RM1.75 billion, according to the group’s bourse filing.
SNS said the corresponding quarter last year benefitted from several substantial commercial orders. Excluding those large contracts, its underlying revenue performance remained relatively stable.
The group declared the first interim single-tier dividend of 0.25 sen per share, payable on Nov 26.
For the six-month period (1HY2027), SNS Network’s net profit dropped by 49.4% to RM15.6 million from RM30.8 million, tracking a 51.5% revenue plunge to RM1.25 billion from RM2.57 billion a year earlier.
However, the group expects the industry to remain resilient as digital technology use grows among individuals, businesses and the public sector.
SNS said it continues to expand its nationwide retail footprint while strengthening its device-as-a-service (DaaS) offerings to tap growing demand for flexible, subscription-based ICT solutions.
The company also expects artificial intelligence (AI) to become a key growth driver as businesses increasingly adopt AI-powered applications.
Shares of SNS were unchanged at 55.5 sen on Tuesday, giving the company a market capitalisation of about RM945.8 million. The stock is down 14.62% over the past 12 months.