KUALA LUMPUR: Systech Bhd, a digital technology company with core offerings in AI-powered enterprise platforms and digital transformation solutions, posted a
revenue from continuing operations that rose sharply to RM274.57 million for Q4 ended March 31, 2026 (FY26), compared to RM8.10 million in Q4 FY25.
The increase was mainly attributable to revenue recognised from newly secured contracts, particularly within the data centre infrastructure solutions project under the Corporate Solutions segment.
Profit before tax (PBT) from continuing operations improved to RM0.26 million, compared to a loss before tax (LBT) of RM4.86 million in the same quarter last year, supported by the strong revenue contribution and the absence of impairment losses on goodwill recognised in the corresponding quarter of the previous financial year.
On a quarter-on-quarter basis, revenue from continuing operations increased by 849% to RM274.57 million from RM28.93 million in Q3 FY26, mainly due to stronger revenue recognition from newly secured contracts.
PBT from continuing operations stood at RM0.26 million, compared to RM0.75 million in Q3 FY26.
While the group recorded significantly higher revenue during the quarter, profitability was partially offset by higher operating expenses incurred to support project execution and business expansion.
The group recorded a loss after tax from continuing operations of RM1.64 million in Q4 FY26, despite reporting a PBT of RM0.26 million, mainly due to the recognition of income tax expenses of RM1.90 million for the full financial year.
This tax charge weighed on the quarter’s bottom line, although the operating performance of the continuing businesses remained profitable at the pre-tax level.
For FY26, revenue from continuing operations surged to RM335.26 million, representing a substantial increase of 707% compared to RM41.54 million in the previous financial year.
The strong full-year performance was mainly driven by revenue recognised from newly secured contracts, particularly relating to the data centre infrastructure solutions project within the Corporate Solutions segment.
For FY26, the group recorded a profit before tax (PBT) of RM1.29 million, a significant improvement from a loss before tax (LBT) of RM3.93 million in FY25.
Although the group reported a loss after tax (LAT) of RM0.16 million for the year, this was a marked improvement from the loss after tax of RM8.24 million recorded in the previous financial year.
The FY26 result was impacted by one-off divestment-related items, namely a loss on disposal of RM2.35 million and a write-off of subsidiary receivables related to the divestment of RM1.82 million.
Excluding these non-recurring items, the group’s adjusted PBT would have been approximately RM5.46 million, reflecting the stronger underlying performance of its continuing operations.
Managing director Dr Low Min Yew said FY26 marks a significant step forward for Systech’s continuing operations, with strong top-line growth and a substantial improvement in underlying earnings.
“The group recorded a PBT of RM1.29 million for the full year despite absorbing one-off divestment-related items, namely a loss on disposal of RM2.35 million and a write-off of subsidiary receivables related to the divestment of RM1.82 million.
“Excluding these legacy items, our adjusted PBT would have been approximately RM5.46 million, which better reflects the strength of the core business.
“At the same time, our net cash flow generated from operating activities increased significantly to RM54.25 million, compared to a net cash outflow of RM24.16 million in FY25, reflecting much stronger project execution and collection momentum,” he said.
Low noted that as of March 31, 2026, the group’s trade and other receivables stood at RM242.13 million, reflecting the scale of project billing and execution undertaken during the period and providing good visibility into continued business momentum over the coming quarters.
“The sharp increase in revenue, supported by new contract wins, demonstrates that our strategic focus on Corporate Solutions is translating into meaningful operating progress,” he said.
The group will continue to focus on expanding its Corporate Solutions portfolio, deepening client relationships, and strengthening recurring revenue, while leveraging its existing customer network and industry relationships to pursue further growth opportunities across the AI, ERP, IoT, and HCM solution space.
