KUALA LUMPUR (April 17): Autocount Dotcom Bhd, which is slated to list on the ACE Market of Bursa Malaysia on May 9, posted a net profit of RM3.66 million or earnings per share of 0.8 sen for its first quarter ended March 31, 2023 (1QFY2023).

The financial management software developer reported revenue of RM10.42 million during the quarter under review, according to its filing with Bursa Malaysia.

The bulk of its quarterly revenue mainly derived from the distribution of financial management software, which contributed 88.71% to total revenue, followed by the technical, support & maintenance (8.58%), and others segment (2.71%).

Malaysia market was the group’s primary revenue contributor, which recorded RM7.39 million or 70.96% of total revenue for 1QFY2023, while Singapore was the major revenue contributor from the overseas market, which recorded revenue of RM3.01 million or 28.92% of total revenue. 

There are no comparative figures for the preceding corresponding quarter, as this is the first interim financial statement announced by the company in compliance with Bursa’s listing requirements.

Moving forward, Autocount believes that it is well-positioned to tap into the expected growth trajectory of the financial management software industry and initiatives by governments.

“These opportunities along with the group’s regional expansion plans through the utilisation of IPO [initial public offering] proceeds, should contribute positively to the group’s financial performance for the financial year ending Dec 31, 2023,” it added.

Autocount is principally involved in the development and distribution of financial management software comprising accounting, point-of-sale (POS) and payroll. It has sold approximately 70,000 software licenses for use by approximately 210,000 businesses and companies, primarily in Malaysia and Singapore.

The group expects its IPO to raise RM30.88 million, with an issue price of 33 sen per share. The IPO price is translated into a price-to-earnings ratio (PER) of 13.13 times.

Autocount will utilise RM17.3 million or 56% from its IPO proceeds to set up offices in Thailand, Indonesia, Vietnam, and the Philippines.

Another RM5.2 million (17%) will be utilised for research and development to expand its existing product features, which includes enhancing its cloud POS, e-commerce solutions, cloud accounting and cloud payroll and human resources.

Meanwhile, the balance of the proceeds will be for the group's working capital and listing expenses.

The group will have a market capitalisation of RM181.67 million upon listing.

In its prospectus launching ceremony last Friday, Autocount executive chairman Choo Chin Peng said that the group is a leading accounting software developer in Malaysia with a 13.76% market share, citing independent market research report conducted by Smith Zander International Sdn Bhd.

The group’s closest publicly-listed competitors are ACE Market-listed IFCA MSC Bhd, as well as Main Market-listed Cuscapi Bhd and Ramssol Group Bhd, Chan said.

Chin Peng and managing director Choo Yan Tiee are both the largest shareholders, with each holding a 41.02% direct stake currently. Post-IPO, their stakes in the company are expected to come down to 30.76%.