ACE Market-listed technology financing (TechFin) and ICT solutions provider ICT Zone Asia Bhd has unveiled its strongest financial performance to date for its FY1/2026 ended Jan 31, 2026.
This marks the group’s first full financial year since its successful transfer to the ACE Market from the LEAP Market on June 3, 2025.
For its FY1/2026, the group recorded a 46.4% year-on-year (yoy) jump in revenue to RM187.0 mil (FY1/2025: RM127.77 mil) with growth primarily anchored on the core TechFin segment which grew 24.3% to RM94.8 mil and the ICT hardware and software trading segment which more than doubled to RM85.3 mil (up 111% yoy).
However, revenue from cloud solutions moderated to RM6.6 mil due to project timing.
The group’s net earnings soared 83.1% to to RM16.11 mi (FY1/2026: RM8.79 mil) while its gross profit notched up 28.2% to RM35.9 mil although the overall gross profit margin eased to 19.2%.
This compression was entirely driven by a change in the revenue mix as the fast-growing hardware trading segment carries structurally lower margins than the core TechFin business which continues to command robust, high-yielding profitability.
Bullish outlook
Reflecting the scale-up of its recurring revenue platform, the group’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 25.8% yoy to RM93.0 mil.
“Our first full year on the ACE Market has been transformative. We successfully deployed our IPO proceeds and invested heavily – over RM100 mil in capital expenditure – to acquire new ICT assets,” commented ICT Zone Asia’s managing director and CEO Tommy Lim.
“In our TechFin model, this CAPEX is our revenue engine with existing assets been immediately deployed into long-term lease contracts that generate sticky, recurring cash flows.”
Looking ahead, Lim contended that the IT hardware market is entering a period of meaningful cost inflation with memory and component shortages expected to push PC prices higher through 2026.
“For many organisations – particularly government agencies and SMEs managing large device fleets – the economics of outright purchase are becoming harder to justify,” he observed.
“This creates a massive opportunity for our TechFin business which directly benefits clients by providing a cheaper, flexible alternative.”
Added Lim: “By converting what would be a heavy upfront capital commitment into a managed, subscription-based solution, we help our clients maintain access to modern and AI (artificial intelligence)-ready computing infrastructure without bearing the full weight of rising procurement costs.”
As of end-January 2026, ICT Zone’s unbilled order book stood at a robust RM293.0 mil, up from RM267.2 mil just three months prior.
Of this unbilled amount, RM109.8 mil is expected to be recognised in FY1/2027, RM86.2 mil (FY1/2028) and RM55.5 mil (FY1/2029).
Furthermore, combining the RM109.8 mil TechFin order book recognition with approximately RM41.6 mil in recently secured hardware trading contracts, ICT Zone enters FY1/2027 with roughly RM151.6 mil in locked-in revenue.
This effectively secures nearly 80% of the group’s entire FY1/2026 full-year revenue right at the start of the year, thus providing exceptional earnings visibility.
Rewarding shareholders for the record year, the ICT Asia board has declared a first interim single-tier dividend of 0.2 sen/share in respect of the financial year ending Jan 31, 2027 which is payable on May 4.
At the end of today’s (March 12) market trading, ICT Asia was down 0.5 sen or 2.9% to 17 sen with 3.12 million shares traded, thus valuing the company at RM135.2 mil. – March 12, 2026
