KUALA LUMPUR: Enterprise IT solutions provider MM Computer Systems Bhd (MMCS) expects sustained demand for enterprise digital infrastructure and cybersecurity services as Malaysian enterprises and government-linked companies (GLC) accelerate technology upgrades and digitalisation initiatives.
Managing director and CEO Macken Young Yoong Chang said MMCS expects continued growth in revenue and earnings over the next two years, supported by long-term enterprise contracts and recurring maintenance income streams.
“We expect similar growth in both our top line and bottom line over the next two years,” he told the media during the company’s prospectus launch today.
The group, which is seeking a listing on the ACE Market of Bursa Malaysia, plans to raise RM26.18 million from its initial public offering (IPO) to support larger project execution capabilities, workforce expansion, capability development and partial repayment of bank borrowings.
Priced at 22 sen per share, the IPO entails the issuance of 119 million new shares and an offer for sale of 47.34 million existing shares, representing a total offering of 166.34 million shares.
The offer implies a price-earnings multiple of about 12.29 times based on MMCS’ audited FY2025 profit after tax attributable to owners of the company of RM10.12 million.
For FY2025, MMCS recorded revenue of RM98.68 million, representing a 33.88% increase from RM73.71 million in FY2024, while profit after tax attributable to owners of the company rose 16.46% to RM10.12 million. Gross profit increased to RM21 million.
As at April 13, 2026, the group had 105 ongoing projects and multi-year support contracts with total unrecognised revenue of RM80.83 million, of which about RM37 million is expected to be recognised in FY2026, while the remaining balance is scheduled for recognition progressively through to 2029 depending on project implementation and delivery timelines.
MMCS said much of its business is structured around multi-phase contracts combining implementation work with recurring maintenance services, allowing the group to build recurring income streams beyond the initial deployment phase and strengthening longer-term earnings visibility.
Young said a typical first-time engagement with a new GLC customer carries a total contract value ranging from RM10 million to RM20 million over a three-year period.
The initial implementation phase generally spans six to nine months and involves system design, deployment and configuration work, followed by recurring maintenance contracts that typically extend for another three years.
The group said the model allows it to deepen long-term customer relationships, expand wallet share and secure repeat engagements over time. One customer’s contribution to MMCS increased from RM16.9 million in FY2022 to RM26.5 million in FY2025 across successive contracts.
GLC-linked customers contributed 49.76% of the group’s revenue in FY2025. MMCS currently serves about 15 GLC across sectors including utilities, retirement schemes, transportation, highways and airport operations.
The group is pursuing seven active tenders with a combined potential value of RM127.13 million as enterprises and GLC continue investing in digital infrastructure, cybersecurity and enterprise IT upgrades.
The tender pipeline exceeds the group’s current order book and remains under evaluation.
The company said tender conversion rates vary depending on project complexity, pricing competitiveness and the number of bidders involved, although long-standing customer relationships generally improve its chances of securing repeat contracts.
