Kronologi banking on EDM, cloud businesses for growth

The rm recorded its highest 1Q revenue and profitability at RM58.8m for its 1Q22, increasing 13% QoQ

by LYDIA NATHAN / Pic by TMR GRAPHIC

KRONOLOGI Asia Bhd will continue to focus on its enterprise data management (EDM) and cloud infrastructure services for growth following a robust take-up rate seen during the Covid-19 pandemic.

CEO and ED Edmond Tay Nam Hiong said the demand for its services during the first quarter ended April 30, 2021 (1Q22), was strong following three consecutive quarters of increasing customer orders.

He said the demand is returning to preCovid-19 levels.

“Our unique hybrid and cloud-based architecture enable unparalleled scalability and deployment flexibility to our customers.

“Customers have accelerated their adoption of our as-a-service business, which delivered over 62% growth on a quarter-on-quarter (QoQ) basis,” he said in a corporate briefing yesterday.

The ACE Market-listed data storage and cloud specialist registered a net profit of RM4.02 million for 1Q22, compared to a net loss of RM11.24 million for the three months between Jan 1 to March 31, 2020.

Kronologi recorded its highest 1Q revenue and profitability at RM58.8 million for its 1Q22, increasing almost 13% QoQ.

The group attributed the performance to strong contributions from enterprise EDM and as-a-service businesses for the hybrid and cloud segments.

It said the majority of its revenue was derived from the Philippines at RM30.98 million followed by Singapore with RM17.72 million.

Tay said Kronologi’s acquisition of a 16.7% stake in a China-based digital infrastructure company, Quantum China Ltd (QCL), in November 2018 for RM12.3 million, has been proven a good decision.

“China is the largest market in Asia and the world for this segment and we want to be relevant to the market as deals have proven to be much larger, rapid and strong,” he said.

Tay said the group closed the deal for the proposed acquisition for the remaining 83.33% equity interest in QCL for RM150 million. He said the proposed acquisition for the entire stake in QCL would allow the company to further expand sales, marketing and customer coverage footprint in an EDM and cloud computing market with growth opportunities potentially larger than the market geographies currently served by Kronologi.

Tay added that the group would be looking at more merger and acquisition opportunities to expand its reach.

Tay is optimistic the group would grow steadily underpinned by its presence across Asean, China and India with the increasing adoption of cloud services.

“We are hopeful these nations will recover from the various lockdowns and restrictions. “During the pandemic, we noticed a lot of business processes were done over the cloud, hence generating digital data creation. “This has brought about growth in the cloud space where data centres will continue to provide capacity,” he said.

Kronologi shares closed 0.79% or half a sen lower to 62.5 sen yesterday, valuing the company at RM392.53 million.