JUST IN: CNBC reports Malaysia is 'emerging as a data center powerhouse in Southeast Asia' amid surging demand for cloud computing and AI, and that if planned capacity comes online, 'Malaysia will only be surpassed by the larger countries of Japan and India'.
HAVING identified artificial intelligence (AI) opportunities in Malaysia, SNS Network Technology Bhd now expects a meaningful contribution from its newly ventured data centre fit-out business segment.
Besides selling AI super servers, the ICT system and solutions provider is also involved in testing and commissioning as well as operation and management within the premises of data centres. In short, SNS fills the gap between server manufacturers and server buyers.
The group believes its financial performance will be lifted by the sale of AI super servers based on the selling price of RM1.5 million per unit and a gross profit margin of 15%, which is higher than its existing core business’ gross profit margin of about 5%.
“This is a game changer for SNS, and it’s a new playground. Generative AI is at the beginning of a supercycle,” co-founder and managing director Ko Yun Hung tells The Edge in an interview.
With more data centres being set up in the country, especially in Johor, he believes there will be growing demand for AI super servers. “We are seeing a lot of potential from this, for the enterprise segment,” he shares, noting that several tech firms have expressed interest in these servers.
As cost will be one of the challenges in adopting AI, Ko says SNS can play a role in helping clients navigate the AI journey. “Some customers may not want to worry much about the whole AI journey, so they can just subscribe to our services [instead of buying the super servers]. And the service, maintenance and warranty will be taken care of by us.”
He is of the view that SNS will be able to fend off market competition given its multi-channel and multi-brand strategy. Furthermore, the additional services could fetch better margins for the group.
“If you just sell the hardware, it will be about a 5% to 10% gross profit margin,” Ko says. In comparison, the traditional consumer devices business offers a gross profit margin of about 5%.
Dun worry guys. Data center business that boost our economy still remain intact & will not runaway. That is our country competitiveness compared with others like Thailand & Indonesia
Cut loss on strength. 2 technical power working in tandem here. Besides the triangular consolidation breakdown, another one is it hit 0.80 n rebounded to 0.93. Once 0.80 breaks, it will go to 0.80 - (0.93 - 0.80) = 0.67.
come on this is just the beginning of AI/DC.. Everything is in first 10-20% phase.. the real FA implications will only contribute 2025 onwards.. probably 100% gains from current price.
if got holding power why cut loss when the counter are undergoing correction. shud hold first then when the rebound happen can do catching up by averaging . afterall we got a lot of expert who are chartist. this kind of panic selling happen becos of retailer throwing also
indeed. this is the best time to buy in or average down.. but first u need to have confidence for this co.. the future of AI/DC is huge. Remember what Jansen Huang said it's gonna be the 5th IR and you dont want to miss out on this.
This is everyday cheaper market one. On a downtrend. Cheap today cheaper tommorow. Cheap tommorow cheaper the next day. The earlier you bail out the better.
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rr88
6,532 posts
Posted by rr88 > 2024-06-18 10:19 | Report Abuse
Bearish breakdown confirmed.
Tp 0.665. Cut loss.