Vstecs Q2 earnings jump 50pct to RM30.31mil on strong growth across all segments

KUALA LUMPUR: Vstecs Bhd reported a surge in net profit for the second quarter, ending June 30, 2026, with earnings jumping 50% to RM30.31 million, up from RM20.17 million in the same period last year. Revenue also saw a significant rise of 31.7% to RM1.08 billion from RM818.87 million, driven by increased sales from the three core business segments: information and communications technology (ICT) distribution, enterprise systems, and ICT services.

The company attributed the growth to higher sales across all product categories within these segments, except for consumables, supplies, tablets in ICT distribution, storage, and commercial desktop personal computers in enterprise systems, and no notable changes in cloud services revenue. Specifically, ICT distribution revenue grew by 19.6%, enterprise systems revenue increased by 46.2%, and ICT services revenue rose by RM12 million due to higher cloud services revenue.

For the first half of 2026, Vstecs' net profit climbed to RM53.19 million, up from RM37.92 million in the same period of 2025, while revenue expanded to RM2.13 billion from RM1.51 billion. CEO JH Soong expressed satisfaction with the company's ability to achieve strong growth across all segments despite recent external challenges, such as global shortages of central processing units and memory chips, leading to higher component costs and longer lead times.

Soong remains optimistic about the long-term prospects of the ICT industry, acknowledging that while current supply constraints and pricing pressures are expected to persist, they are viewed as temporary issues. The company's confidence stems from its strong balance sheet, disciplined execution, robust internal systems, and established position within the technology ecosystem.