Hello, fellow investors and tech enthusiasts!
AwanBiru Technology Berhad (Awantec), a prominent player in Malaysia’s technology landscape, has just released its unaudited interim financial report for the quarter ended 31 March 2025. This report offers a fresh look into the company’s performance, highlighting a quarter of revenue growth and a pivotal resolution to a long-standing dispute. While the quarter saw a positive turnaround in profit, the year-to-date figures present a more complex picture. Let’s dive into the details and unpack what this means for Awantec’s journey ahead.
Q3 FY2025 Financial Performance: A Mixed Bag
Awantec’s latest quarterly results show an interesting dynamic. For the individual quarter ended 31 March 2025, the Group reported a notable increase in revenue, signaling strong operational activity. However, profitability saw a decline when compared to the same period last year, primarily due to specific segment performance factors.
Quarter-on-Quarter (Q3 FY2025 vs Q3 FY2024)
Q3 FY2025
Revenue: RM63,732k
Profit Before Taxation (PBT): RM1,186k
Total Comprehensive Income: RM1,036k
Basic Earnings Per Share: 0.13 sen
Q3 FY2024
Revenue: RM55,765k
Profit Before Taxation (PBT): RM2,305k
Total Comprehensive Income: RM2,024k
Basic Earnings Per Share: 0.27 sen
Revenue for the quarter increased by approximately 14% to RM63.7 million from RM55.8 million in the previous corresponding quarter, largely driven by the Software & Services segment. Despite this revenue growth, the Group’s Profit Before Taxation (PBT) saw a 49% decrease, falling to RM1.2 million from RM2.3 million in Q3 FY2024. This was mainly attributed to lower incentives earned within the Software & Services segment during the current quarter.
Year-to-Date (YTD Q3 FY2025 vs YTD Q3 FY2024)
YTD Q3 FY2025
Revenue: RM75,622k
Loss Before Taxation (LBT): (RM1,826)k
Total Comprehensive Expenses: (RM2,126)k
Basic Earnings Per Share: (0.27) sen
YTD Q3 FY2024
Revenue: RM84,390k
Profit Before Taxation (PBT): RM3,677k
Total Comprehensive Income: RM3,091k
Basic Earnings Per Share: 0.42 sen
Looking at the cumulative nine-month period, the Group’s revenue decreased by 10% to RM75.6 million from RM84.4 million in the prior year’s period. This decline was primarily due to lower revenue from the Talent segment. Consequently, Awantec recorded a Loss Before Taxation (LBT) of RM1.8 million for YTD Q3 FY2025, a significant shift from the RM3.7 million profit recorded in YTD Q3 FY2024. This was largely influenced by the Talent segment’s lower revenue, particularly from the Selangor Kerjaya program which concluded in FY2024, and reduced incentives in the Software & Services segment.
Segmental Performance Deep Dive
AwanTec operates across distinct business segments, each contributing to the overall performance:
- Software & Services: This segment, encompassing license distribution, system integration, cloud solutions (IaaS, SaaS, PaaS, XaaS), and managed services, remains the primary revenue driver. While its revenue increased quarter-on-quarter, its profit before taxation saw a reduction due to lower incentives.
- Talent: This segment, focusing on career placement, upskilling, and training, experienced a reduction in loss for the current quarter, benefiting from higher revenue and lower operating expenses. However, its year-to-date performance was impacted by the conclusion of the Selangor Kerjaya program, leading to a significant drop in revenue and a shift from profit to loss.
- Concession: This segment relates to the integrated immigration system solution. It did not generate revenue for the quarter or year-to-date, and recorded minor losses.
- Others: This segment, primarily investment holding, showed an improved loss position for both the quarter and year-to-date, mainly due to lower operating expenses and higher other income.
Navigating the Future: Prospects and Strategic Focus
Awantec’s Q3 FY2025 performance, particularly the quarterly profit, was bolstered by strong contributions from strategic accounts and increasing customer adoption of Cloud infrastructure. The company is actively pursuing its transformation plan by launching new offerings in high-growth areas such as Artificial Intelligence (AI), Cybersecurity, e-Invoicing, and Enterprise Resource Planning (ERP) solutions. These additions are designed to expand its Cloud-based service portfolio, aiming for sustained growth and an enhanced value proposition.
A significant development for Awantec is the resolution of the long-standing dispute concerning the Sistem Kawalan Imigresen Nasional Project (SKIN). Prestariang SKIN Sdn. Bhd. received a full and final settlement of RM201.4 million on 14 May 2025, following a Consent Order from the Court of Appeal. This marks a pivotal moment, providing certainty and allowing the Group to fully concentrate on its core growth drivers, particularly in AI and Cybersecurity, and to invest in enhancing its technical capabilities for innovation.
As Google Cloud’s premier partner in Malaysia, Awantec is well-positioned to support the Government’s digital transformation agenda. The Government’s commitment to AI further aligns with Awantec’s strategy to scale the adoption of Google’s generative AI capabilities among its customer base.
Summary and
AwanBiru Technology Berhad’s Q3 FY2025 report showcases a company in transition. While the quarter saw a positive revenue trend and a return to quarterly profitability, the year-to-date performance reflects the impact of discontinued programs and lower incentives in key segments. The successful resolution of the SKIN project dispute is a major positive, freeing up resources and management focus to pursue new growth avenues in cutting-edge technologies like AI and Cybersecurity.
It is important to note that this blog post provides an objective analysis of the company’s financial report and does not constitute any form of investment recommendation to buy, sell, or hold the company’s shares. Investors should conduct their own thorough due diligence before making any investment decisions.
Key points to watch for Awantec’s future performance include:
- Successful Market Penetration of New Offerings: The adoption rate and revenue contribution from its new AI, Cybersecurity, e-Invoicing, and ERP solutions will be critical.
- Sustained Growth in Software & Services: Monitoring the consistency of revenue and profitability in its core Software & Services segment, especially regarding incentive structures.
- Talent Segment Turnaround: Observing how the Talent segment adapts and finds new revenue streams following the conclusion of previous programs.
- Leveraging the SKIN Settlement: How the significant cash inflow from the SKIN settlement is strategically deployed to fuel growth and enhance capabilities.
Awantec appears to be at an inflection point, leveraging a significant financial settlement to pivot towards high-growth technology sectors. The company’s strategic alignment with the government’s digital agenda and its focus on AI and Cybersecurity could pave the way for future opportunities.
What are your thoughts on Awantec’s strategy and its prospects in the evolving Malaysian tech landscape? Do you believe their new offerings in AI and Cybersecurity will be enough to drive sustained growth? Share your insights in the comments below!
