Systech to strengthen cyber security biz
Systech Bhd, an e-business solutions provider, is strengthening its cyber security business segment to contribute equally to its current financial year revenue.
The listed firm on Bursa Malaysia’s ACE Market said its subsidiary SysArmy Sdn Bhd — which undertakes its cyber security business — currently contributes 30% to overall revenue.
Founder and CEO Raymond Tan Hock Ann (pic) told reporters after the company’s AGM yesterday that he expects SysArmy to contribute 50% to the overall revenue of Systech.
“Our cyber security solutions business started three years ago and has finally broken even last year. We expect it to contribute half the revenue of financial year 2018 (FY18),” he said.
Systech — which is in a net cash position — in a filing to Bursa on Dec 12, said it had bought 51% of SysArmy for RM255,000.
Systech and SysArmy are involved in e-business including the design, research and development (R&D), customisation and implementation of web-based software solutions.
The cyber security solutions involve big data analytics and related applications, which focus on cyber security and advisory services, security management and monitoring systems.
“Our solutions are supplied not only to customers located in Malaysia, but also in countries within the Asian region and Europe, the UK and the US,” Tan said.
He said with the demand for cyber security of late, the group had — during the year — ventured into Indonesia by incorporating PT Sysarmy Indocyber Security with a local individual.
For the financial year ended March 31, 2017, the group recorded a 35% rise in its revenue to RM15.2 million from RM11.2 million the year before.
Profit after taxation and non-controlling interest was RM2.7 million, more than double the RM1.2 million recorded a year ago.
“Corporate borrowings have been relatively low to ensure the group’s expansion plans are not affected,” Tan said.
He said the group maintained a cash reserve of RM7.3 million, despite investing RM3.3 million in R&D for both business segments.
“We are the only ACE-listed company to have declared dividends for the last five years, including the recent 3% per share dividend for FY17,” he said.
Systech — which has been in the business for more than a decade — has a 60% overseas, 40% local sales ratio. Tan said the company had a 30% local market share.
Its overseas markets comprise mainly of Asean markets, South Korea, Hong Kong, China, as well as the UK, the US and Europe.
“Apart from existing business, we will actively look for suitable merger and acquisition targets that complement the group’s overall business activities,” he said.
Over the past month, its share price rose 31%, trading at 42.5 times while trailing the 12-month earnings per share. Systech closed unchanged yesterday at 36 sen per share with a market capitalisation of RM114.24 million.