Kronologi Asia remains cautiously optimistic over coming quarters

Kronologi Asia remains cautiously optimistic over coming quarters

KUALA LUMPUR: Kronologi Asia Bhd’s earnings performance has been below expectations, but there is a case for optimism amid signs of China’s economy reopening and healthy take-up of the group’s services.

The provider of enterprise data management technology and solutions announced on Wednesday its net profit in 2Q ended July 31, 2022, had fallen 39.2% year-on-year (y-o-y) to RM3.1mil as revenue contracted 15.28% to RM63.13mil.

Earnings per share fell to 0.44 sen from 0.82 sen in the same quarter last year.

However, Kronologi CEO Edmond Tay said the group could be seeing a pick-up in customer demand over the next two quarters.

“The group’s performance during the last quarter and throughout this fiscal period was weaker than our initial expectations.

“We however, remain cautiously optimistic that signs of economic reopening in China and continued healthy take up of our consumption (pay per use) and subscription (as-a-service) models will power the group’s performance for the second half of FY2023,” he said in a statement.

For the six months period to July 31, 2022, the group reported a net profit of RM5.32mil on the back of revenue of RM120.46mil.

The majority or 40.3% of the revenue was recognised from Singapore, amounting to RM48.54mil, followed by China and Philippines which combined recorded 46.4% or RM55.86mil.

By product category, the enterprise data management (EDM) infrastructure technology segment continued to dominate the group’s revenue, amounting to RM91.34mil or 75.8% of total revenue, with EDM As-A-Service making up the balance.

The group added that ongoing macroeconomic, higher costs of doing business and geopolitical uncertainties resulted in slower technology-led deployments as well as commercial and production delays.