SNS NETWORK TECHNOLOGY BERHAD SNS (0259) foresees strong growth for its DaaS subscription-based service

SNS NETWORK TECHNOLOGY BERHAD  SNS (0259) foresees strong growth for its DaaS subscription-based service

KUALA LUMPUR (Aug 8): SNS Network Technology Bhd, which is set to be listed on Bursa Malaysia's ACE Market on Sept 2, foresees strong growth for its device-as-a-service (DaaS) subscription-based service, as more businesses are exploring remote or hybrid working options.

Managing director Ko Yun Hung said DaaS is rising in popularity, especially post-Covid-19, noting that there is a huge potential in Malaysia’s DaaS market.

“After the pandemic, digital users rapidly grew and upgraded their existing internet protocol infrastructure, and DaaS is one of their ways to be up-to-date with technology adoption,” he told Bernama.

DaaS is typically offered on a monthly subscription basis, where information and communications technology (ICT) products, such as hardware and software and services, are bundled according to customers' requirements, and offered through direct subscription or third-party leasing.

“The contract period of DaaS subscriptions typically ranges from one to five years.

“Based on enquiries from potential customers, SNS will purchase ICT products, such as desktops, laptops, interactive smartboards, workstations, digital signages, printers and servers, to support the expansion of the service,” he said.

The ICT system and solution provider offers end-to-end ICT systems and products from third-party brands and its house brand, JOI, including ICT service and solutions, repairs and upgrades, as well as broadband services to customers.

It also offers a wide range of third-party branded products, with 32,419 stock-keeping units (SKUs) and its own house brand, JOI (360 SKUs), as of April 30.

“Our 24 years of experience has enabled us to remain competitive in the market, due to rapid advancement of technologies, supporting the continuous development and improvement in our JOI ICT products,” Ko said.

From 2020 to June 30, 2022, SNS recorded 82 DaaS subscriptions worth RM255.86 million, and received 75 enquiries from governmental bodies and public-listed companies.

The company launched JOI in 2014 by introducing the JOI 8 tablet to meet demand for affordable ICT products while ensuring good product quality and specifications.

According to Ko, JOI is well positioned to capture opportunities arising from demand for affordable ICT products within the education sector, which has shifted towards digital classrooms due to the pandemic.

As of April 30, SNS had successfully secured 58 projects from educational institutions nationwide to implement the JOI smart classroom framework.

The company is also constructing a regional hub for future business growth in the commercial channel, and expanding its physical stores nationwide.

The regional hub willl include an experience centre for the company to showcase new and innovative ICT and Internet-of-Things solutions, such as smart homes, smart retail, smart education, smart signages and smart shelving.

“It will also have storage facilities, a service centre, live video areas, training centres, workshops and office facilities, and is expected to be operational by January 2026,” he said.

Moving forward, the company plans to expand its business through 10 new brand-speciality stores and multibrand concept stores in Malaysia, particularly in the Klang Valley, Johor and Penang.

Ko said as of April 30, SNS’ physical store channel comprised 56 brand-speciality stores, and seven multibrand concept stores in Kuala Lumpur, Selangor, Perak and Kelantan.

The ICT system and solution provider will be issuing 362.9 million new shares under its initial public offering (IPO), representing 22.5% of the enlarged share capital at an issue price of 25 sen per share.

 It expects to raise RM90.72 million from the IPO, of which 34.1% or RM30.9 million will be allocated to expand its DaaS subscription-based service.

http://www.theedgemarkets.com/article/sns-network-foresees-strong-growth-its-daas-subscriptionbased-service