KUALA LUMPUR: MM Computer Systems Bhd expects rising tensions in the Middle East to drive up prices of key technology components, such as random access memory (RAM) chips and hard disk drives.
However, the group sees the impact on its overall business as manageable, as customer demand continues to grow.
Managing director and CEO Young Yoong Chang said the company has seen some cost increases within its supply chain, particularly for memory and storage products, amid ongoing global uncertainties.
“Prices for RAM and hard disks have increased slightly, but we anticipated the situation early and engaged our customers ahead of time,“ he said after the company’s ACE Market debut on Bursa Malaysia today.
Young noted that the company has maintained close communication with customers to manage expectations and adjust pricing where necessary.
He said that while higher component costs have placed some pressure on the supply chain, the impact on the group’s top and bottom lines has been limited, supported by steady demand from customers in Malaysia.
“Our customers are still growing, and we have been working closely with them from an early stage. Because of that, we have been able to manage the situation and pass through some of the higher costs where necessary,“ he added.
Young said the company continues to monitor developments closely but remains confident in its ability to navigate supply chain challenges while supporting customers’ technology requirements.
Operating through its wholly-owned subsidiaries, Micro Technology Solution Sdn Bhd and SMIND Sdn Bhd, MM Computer Systems supports mission-critical enterprise IT environments across IT infrastructure, networking, and cybersecurity.
The group’s service offerings are complemented by recurring maintenance, technical support and IT outsourcing services, including resident engineers embedded within customer environments under ongoing service contracts.
Its multibrand capabilities also enable the group to customise enterprise IT solutions to customers’ operational requirements, security considerations and budget priorities.
Commenting on opportunities in the growing data centre segment, Young said the group has already been involved in several projects, particularly in the design and implementation of server and storage infrastructure for existing public-listed company clients.
“We do have requirements coming from the data centre space, and we have undertaken design and implementation work for server and storage systems within our clients’ data centre environments.”
However, Young noted that the company has yet to secure a major standalone data centre contract despite ongoing discussions with potential customers. “So far, we have not secured a successful deal in this area yet. We are still engaging with potential clients and waiting for the right opportunity.”
Young said it remains too early to assess the size of the opportunity or the level of demand that could translate into meaningful contracts. “At this stage, we have not seen enough visibility to determine the potential value. If we are successful in securing a project, it could be a good deal for the company, but I would not say that we are there yet.”
MM Computer Systems opened at 22 sen today, unchanged from its initial public offering (IPO) price, with a market value of RM124.74 million. It closed at 22.5 sen.
The group raised RM36.2 million from the IPO, which will be used to procure IT hardware and software, expand its workforce, repay borrowings and cover listing expenses.
While government-linked companies (GLC) remain a key customer segment, representing nearly half of its client base across the utilities, transport, highway and pension sectors, MM Computer Systems is looking to strengthen its foothold in the private sector as part of efforts to diversify its customer mix.
Addressing concerns over rising IT hardware costs, Young said the group faces limited exposure to pricing volatility as customers are generally aware of global market trends and adjust their procurement budgets accordingly.
“Customers understand that hardware prices are influenced by global supply and demand dynamics. When costs increase, they typically factor this into their budgets when planning their purchases,“ he said.
He added that MM Computer Systems’ business model helps cushion the impact of hardware price fluctuations, as the group provides integrated solutions rather than selling standalone products.
“For our enterprise and GLC customers, we are not simply supplying laptops, desktops or hardware components. We provide a complete solution that includes hardware, software and IT services bundled together,“ Young said.
He noted that the bundled approach allows the group to maintain its margins by deriving value from the overall project rather than relying solely on hardware sales.
“Our focus is on delivering the entire solution package. Because IT services form part of the offering, we are able to manage our margins across the whole project instead of depending entirely on hardware pricing,“ Young said..
