This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Having marked its 40th anniversary in 2025 with another record financial performance and its first The Edge Billion Ringgit Club (BRC) corporate award, VSTECS Bhd (KL:VSTECS) has set a high bar for itself for the decade ahead.

The momentum continues with the group making its second appearance on The Edge BRC winners list this year, taking home two trophies this time.

During The Edge BRC awards evaluation period, VSTECS’ share price more than tripled, rising from RM1.22 on March 31, 2023, to RM4.57 (cum its two-for-one bonus issue) on March 31, 2026 — representing a 55.3% three-year compound annual growth rate (CAGR) in shareholder returns.

On June 9 this year, VSTECS listed 720 million new bonus shares, giving eligible shareholders two new shares for every existing ordinary share held. The bonus issue contributed to VSTECS’ clinching The Edge BRC Highest returns to shareholders over three years corporate award for a second consecutive year.

Shareholder returns were also supported by a dividend per share of 10.8 sen, or RM38.51 million, for FY2025, including a special dividend of four sen per share. This was up from 7.7 sen per share in FY2024.

VSTECS also bagged The Edge BRC corporate award for Highest growth in profit after tax over three years for the first time. Its net profit rose from RM59.7 million in FY2022 to RM98.5 million in FY2025, translating into risk-weighted profit-after-tax growth of 13.6% a year over three years — enough to beat its technology-sector peers.

Record profits lifted return on equity (ROE) to 18.3% in FY2025, from 14.7% in FY2024 and 15.5% in FY2023. This translated into a three-year weighted average of 16.7%, but was not enough to clinch a third trophy this year.

VSTECS is a constituent of the Bursa Malaysia Quality 50 Index (BMQ50), whose constituents are assessed using what the stock exchange operator calls “three financial measures of quality”: profitability (return on equity); capital structure (debt-to-equity ratio); and earnings quality (operating cash flow relative to profit after tax and minority interests).

Listed on Bursa Malaysia Securities Bhd’s Main Market on April 15, 2010, VSTECS is an associate company of VSTECS Holdings (Singapore) Ltd, wholly owned by Hong Kong Stock Exchange-listed VSTECS Holdings Ltd.

VSTECS distributes a range of ICT products to the retail and enterprise market, including notebooks, PCs, smartphones, tablets, printers, software, network and communication infrastructure, servers and enterprise software. Through 4,000 resellers comprising retailers, system integrators and corporate dealers, VSTECS also provides value-added product support and technical services.

The company’s vision is to be a leading provider of ICT products and value-added services while pursuing sustainable growth to deliver optimal returns to shareholders.

Earnings momentum looks more than decent in the first half of FY2026, with net profit jumping 40.3% year on year (y-o-y) to RM53.19 million from RM37.92 million, on the back of a 40.7% y-o-y increase in revenue to RM2.13 billion from RM1.51 billion.

Its outlook remains challenging despite Malaysia’s economic expansion driving ICT infrastructure demand. In its latest second-quarter results, VSTECS said severe CPU and memory chip shortages, compounded by AI-driven supply constraints and rising costs, “will persist through 2027 and 2028”.

“While some projects have been delayed, organisations pursuing digital transformation, AI adoption and cybersecurity initiatives are unlikely to defer critical infrastructure investments. We continue to manage longer lead times and price fluctuations through close communication with our customers and technology principals,” VSTECS CEO J H Soong says in a statement accompanying its 2Q earnings release.

“Looking further ahead, we remain optimistic. Although current supply constraints and pricing pressures are expected to persist in the near term, we believe these are temporary challenges and that the long-term growth outlook for the ICT industry remains compelling. Backed by a strong balance sheet, disciplined execution, robust internal operating systems and an entrenched position within the technology ecosystem, we are confident in our ability to navigate these near-term challenges effectively while continuing to capture the growth opportunities presented by Malaysia’s digital economy.”

If earnings momentum continues into the second half, VSTECS could post another record year, setting the stage for a third consecutive appearance on The Edge BRC winners’ list next year.

On Sept 1, VSTECS said it expects a RM21.96 million one-time gain from selling its entire 40% stake in ISATEC Sdn Bhd for RM48.75 million, seven years after acquiring it, to redirect capital towards larger projects, including AI and data-centre infrastructure.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.