ICT Zone Asia Bhd, an ACE Market-listed technology financing (TechFin) and ICT solutions provider, has achieved a stellar 1Q FY1/2027 ended April 30, 2027 with its net earnings having spiked 34.6% year-on-year (yoy) to RM4.49 mil (1Q FY1/2026: RM3.33 mil) while its revenue exceeded RM100 mil for the first time.
The group’s revenue spiralled 141% yoy to RM100.31 mil (1Q FY1/2026: RM341.62 mil) while its pre-tax profit edged up 28.6% yoy to RM5.74 mil (1Q FY1/2026: RM4.47 mil). Basic earnings per share stood at 0.56 sen, against 0.50 sen a year earlier.
The increase was led by the trading of ICT Hardware and Software segment which raked in revenue of RM72.3 mil (1Q FY1/2026: RM17.5 mil) on additional orders and contracts secured from corporate and government customers.
Technology Financing which is the group’s core segment grew 22.7% to RM26.9 mil while gross profit rose 19.4% to RM10.1 mil.
Gross profit margin was 10.1% against 20.4% a year earlier, mainly reflecting the larger revenue contribution from the trading segment which carries lower margins than the group’s other segments.
“Crossing RM100 mil in quarterly revenue is a useful marker but the figure I watch is how much recurring, contract-backed business we’re building underneath it,” commented ICT Zone’s managing director and CEO Tommy Lim Kok Kwang.
Subscription-based model boost
“TechFin is where we want the group’s weight to sit – it’s recurring and carries the margins that matter to us.”
Added Lim: “As organisations move from owning technology to subscribing to it, our job is to make that switch easy and to keep drawing value from each ICT asset across its lifecycle.”
As of end-April 2026, the group’s unbilled order book stood at RM280.7 mil of which RM275.7 mil was from the Technology Financing segment and RM4.9 mil from cloud solutions and services.
About RM84.4 mil is expected to be recognised over the remaining nine months of the group’s FY1/2027 with the balance thereafter subject to client deployment schedules.
As it is, current order book supports the group’s subscription-based model under which customers access ICT devices and solutions through operating expenditure (OPEX) arrangements rather than large upfront capital expenditure (CAPEX).
Net cash generated from operating activities chalked up to RM19.5 mil from RM5.8 mil in 1Q F1/2026 while cash and bank balances stood at RM37.9 mil as of end-April 2026 (end-January 2026: RM26.8 mil).
The group had earlier declared an interim dividend of 0.20 sen/share in respect of FY1/2027 amounting to about RM1.6 mil which was paid on May 4.
To date, ICT Zone has fully utilised RM21.0 mil of its public-issue proceeds to expand its TechFin business by deploying ICT assets which are funded alongside borrowings to secure long-term contracts.
Moving forward, the group remains cautiously optimistic on the quarters ahead, underpinned by continued demand for subscription-based ICT procurement across the public and private sectors and the structural shift from CAPEX-based ownership to OPEX-driven subscription.
It also expects to benefit from rising demand for AI (artificial intelligence)-capable devices, the Windows 10 end-of-support cycle and Malaysia’s national push on AI infrastructure which align with its Everything-as-a-Service (XaaS) offerings.
At 12.18pm, ICT Zone was up 0.5 sen or 2.78% to 18.5 sen with 2.25 million shares traded, thus valuing the company at RM147 mil. – June 24, 2026
