KUALA LUMPUR: Mikro MSC Bhd intends to tap into the Internet of things (IoT) space in its new financial year ending June 30, 2018 (FY18) by expanding its markets and product offerings to maintain its earnings growth momentum, according to managing director and largest shareholder Yim Yuen Wah.
“We have been working on this in the last four years and have invested a few millions in R&D (research and development) for this,” Yim, who has a 34.2% stake in Mikro MSC, told The Edge Financial Daily after the group’s annual general meeting (AGM) yesterday.
Mikro MSC executive director Fong See Ni said the company wants to move into connected systems, and that it is important its IoT introduction to customers be priced right.
“When we talk about new products, it is related to existing offerings. It’s more like an upgrade with new features, maybe with some elements of IoT. Rather than a stand-alone system, it will be an integrated system … everybody wants to have all these features but the pricing must be at a level that is right for businesses and our customers,” Fong added, adding Mikro MSC is confident it is in a position to do so.
In its financial year ended June 30, 2017 (FY17), Mikro MSC’s gross profit margin was at 52.6%, with a 4.8% year-on-year top-line growth to RM50.4 million, which pushed net profit up 5.4% to RM11.1 million from RM10.5 million in FY16.
Presently, the group commands about 50% of the local market share and has seen its business in Vietnam gain traction.
Yim said Asean’s and Malaysia’s infrastructure growth stories are positive for Mikro MSC since its digital meters, relays and power factor regulators are used in high rises, as well as in mass rail transport systems being developed in the region.
In FY17, its Malaysian market contributed about 56.4% of total revenue while Vietnam gave 24.8%, with the rest from Iran, India and others.
In FY18, the group expects to complete its move to its new factory in Shah Alam — which it bought for RM11.7 million. The move is expected to cost it another RM5 million, including for the purchase of new equipment and machinery.
Yim and Fong both highlighted that the move is significant to the group. “It gives us the opportunity to introduce new automation and other capacity that we could not do in the past as we have a larger space now,” Yim added.
Mikro MSC shares closed unchanged at 49.5 sen yesterday, with a market capitalisation of RM215.4 million. From a year ago, the stock has climbed 52.1%.