Systech’s 2Q15 net profit jumps 118%

by **Cals** Fri 21 Nov 2014, 01:57

Systech’s 2Q15 net profit jumps 118%

KUALA LUMPUR: ACE-market listed Systech Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), which has drawn strong trading interest of late, posted a 118% jump in net profit for the second quarter ended Sept 30, 2014 (2Q15) to RM1.04 million from RM477,000 in the previous corresponding quarter.
Earnings per share in the quarter doubled to 0.33 sen from 0.15 sen.
Quarterly revenue swelled 59.5% to RM2.61 million compared with RM1.64 million a year ago, “mainly due to higher contribution from Mobysys’ [Sdn Bhd] customers”, said Systech in a filing to Bursa Malaysia.
Systech currently has two operating subsidiaries. Through Syscatech Sdn Bhd, it designs develops, customizes and implements proprietary software solutions to mostly multi-level marketing (MLM) and direct selling companies. It also develops franchise software system for retail and franchises’ operational and management needs under Mobysys.
Gross margin for the quarter widened to 74% from 66.7% in 2Q14.
For the six months ended Sept 30, 2014 (6MFY15), Systech’s net profit more than doubled to RM1.84 million from RM667,000 in the previous corresponding period. Revenue came in 66.3% higher at RM4.78 million from RM2.88 million a year ago.
In an interview with The Edge Financial Daily three weeks ago, CEO Raymond Tan said the group was looking at a double digit growth in revenue and profit for current financial year ending March 31 and FY16.
Systech intends to expand its current business of providing e-business solutions, and also through a new revenue stream of setting up cyber security solutions – as an additional offering to its current clientele – which serves to prevent hacking.
Tan said he hopes for this third business stream to contribute up to the group’s revenue by FY16. Currently, Syscatech and Mobysys contribute 56% and 35% to group revenue respectively.
The group is also eyeing expansion in China and the United States, Tan added. Geographically, Malaysia accounted for 30.7% to group revenue for the 6M15, with North Asia and other areas (43%) and South East Asia (26.4%).
Systech is the second most actively traded stock on Bursa Malaysia today. Its share price rose 4.5 sen or 18% to all-time high of 29.5 sen since it was listed in 2011 through a reverse take-over. At the one-year mark, the stock has almost tripled in share price from trading at just levels of 10 sen a year ago. Its market capitalisation today stood at RM79.33 million.