Systech Bhd. (“Systech” or the “Group”), a Malaysian digital technology company with core offerings in AI-powered enterprise platforms and digital transformation solutions, today announced its financial results for the first quarter ended 30 June 2026 (“Q1 FY2027”), delivering a sharp increase in revenue and a return to profitability from continuing operations.
For Q1 FY2027, revenue from continuing operations surged 906% year-on-year to RM152.04 million from RM15.11 million in the corresponding quarter last year. The strong increase was mainly driven by revenue recognised from newly secured projects, particularly those relating to AI infrastructure and computing solutions. Gross profit rose 51% year-on-year to RM3.74 million from RM2.48 million.
The stronger revenue base translated into a significant earnings turnaround. Profit before interest and tax improved to RM1.60 million from a loss of RM0.36 million in the corresponding quarter, while profit before tax (“PBT”) turned positive at RM1.39 million compared with a loss before tax of RM0.54 million a year earlier. Profit attributable to owners of the parent stood at RM1.45 million, reversing from a loss attributable to owners of RM0.51 million in the preceding year corresponding quarter.
On a quarter-on-quarter basis, PBT increased 441% to RM1.39 million from RM0.26 million in the immediately preceding quarter, despite revenue moderating to RM152.04 million from RM274.57 million. The lower sequential revenue was mainly due to capacity constraints faced by a service provider supporting the AI infrastructure and computing solutions project, which delayed the fulfilment of certain project requirements during the quarter.
The sequential improvement in profitability was supported by sales of other business solutions within the Corporate Solutions segment, favourable foreign exchange movements and the absence of trade and other receivables write-offs that were recognised in the immediately preceding quarter.
Dr Low Min Yew, Managing Director of Systech Bhd., said, “The strong year-on-year revenue growth and return to profitability reflect the progress we have made in scaling our Corporate Solutions business, particularly in AI infrastructure and computing solutions. We are encouraged that the broader revenue base is beginning to translate into stronger earnings, while we continue to focus on disciplined execution and delivery.”
He added, “Our priority going forward is to deepen our capabilities across AI, Enterprise Resource Planning, Internet of Things and Human Capital Management, while broadening our solution offerings and strengthening relationships with existing customers. We also intend to leverage our customer network and industry relationships to pursue additional opportunities across both the public and private sectors.”
Looking ahead, Systech will continue to strengthen its Corporate Solutions segment by expanding its digital transformation and automation offerings across AI, ERP, IoT and HCM. Building on the progress achieved in FY2026 and Q1 FY2027, the Group will continue to enhance project execution capabilities, broaden its solution portfolio and deepen engagement with existing customers.
The Group will also continue to evaluate suitable strategic collaborations and business expansion opportunities that complement its existing capabilities and support long-term growth. Barring unforeseen circumstances, the Board remains cautiously optimistic that these initiatives will contribute positively to the Group’s operational and financial performance and support its long-term business sustainability.
