Quarterly Report For The Financial Period Ended 31 December 2016
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Unaudited Interim Financial Report For The Period Ended 31 December 2016 Condensed Consolidated Statement Of Financial Position
Unaudited Interim Financial Report For The Period Ended 31 December 2016 Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income
Review of performance
Comparison results of current quarter and previous year corresponding quarter
For Q4 FY2016, the Group recorded higher revenue of RM551.6 million, an increase of 11.1% compared with RM496.5 million in the corresponding quarter last year mainly from ICT Distribution Segment. Profit Before Tax (PBT) increased by 21.6% to RM16.7 million compared with the corresponding quarter last year of RM13.7 million mainly due to higher sales and write back of impairment loss on trade receivables.
The performance of the three business segments for Q4 FY2016 compared with Q4 FY2015 were as follows:
Revenue increased by 13.5% with higher sales from PCs, Notebook and smartphones. With higher sales, the PBT increased by 6.7% to RM8.7 million compared with last year's corresponding period of RM8.2 million.
Revenue increased by 6.8% with higher sales of networking equipment. PBT increased by 32.3% to RM6.9 million compared with last year's corresponding period of RM5.2 million mainly due to write back of project provision.
Revenue decreased by RM3.4 million. However with higher GP margin, the PBT increased to RM528,000 compared with last year's corresponding period of RM416,000.
The business outlook for 2017 remains challenging due to the current soft economic environment. The weak Ringgit against the US Dollar has resulted in price increase on all ICT products and consumer buying sentiment is cautious while corporate users have reduced their ICT spending.
For 2017, International Data Corporation (IDC) has forecasted 6.2% growth on the ICT products that the Group is distributing in Malaysia. We have planned to grow our market share on PC, Notebook and Smartphone while exploring new opportunities on Internet of Things (IoT). For Enterprise Systems, we shall invest in the latest technology trends to focus on Hyper-Converged Infrastructure and Cyber Security products.
With our strategies in place for the above market scenario, we are cautiously positive on the overall outlook for FY 2017.