Scicom (MSC) Berhad Q3 2026 Results – Robust Growth and Positive Outlook

Key Highlights from Third Quarter Report Ended 31 March 2026

• Substantial Revenue and Profit Growth: The Group posted a 46.5% year-on-year increase in revenue, reaching RM222.83 million for the nine months ended 31 March 2026. Profit before taxation surged 129.6% year-on-year to RM49.49 million, outstripping the full-year profit before tax for FY2025 by 83.9%.
• BPO Segment Leads Growth: The Business Process Outsourcing (BPO) segment remains the Group’s primary revenue driver, contributing RM222.79 million for the nine-month period, up RM70.65 million from the previous year. This was attributed to higher transaction volumes and contributions from newly secured BPO projects.
• Education Segment: Revenue from Education was modest at RM37,000, but marked a notable increase from RM1,000 in the prior period, mainly from online training sessions.
• Quarter-on-Quarter Performance: For the third quarter, revenue rose to RM79.21 million from RM72.50 million in Q2, driven by new BPO projects, though profit before tax dipped slightly to RM15.71 million due to lower transactional volumes in higher margin projects.
• Strong Dividend Payouts: The Group continues to reward shareholders, with three interim dividends declared and paid in the period – RM4.44 million (1.25 sen/share, Sep 2025), RM10.66 million (3.0 sen/share, Dec 2025), and RM10.66 million (3.0 sen/share, Mar 2026). A third interim dividend of 3.0 sen/share (RM10.66 million) has been declared, payable on 29 June 2026.
• No Borrowings, Healthy Balance Sheet: The Group has no borrowings or outstanding debt securities, indicating a strong financial position and prudent cash management.
• High Effective Tax Rate: The Group’s effective tax rate was 29% for the quarter, and 31% for the period, higher than the statutory rate of 24%, due to expenses not deductible for tax, underprovisions from prior years, and recognition of previously unrecognised capital allowances and business losses.
• Ongoing Litigation: A legacy litigation case with Informatics International Limited in Sri Lanka is ongoing, with the next pre-trial hearing scheduled for 18 June 2026. There are no other material litigation matters pending.
• Commitments and Investments: Capital commitments for plant and equipment rose sharply to RM3.20 million (authorised and contracted), compared to RM243,000 a year earlier, indicating ongoing investment in capacity and infrastructure.
• Operational Momentum and Gov-Tech Pipeline: Newly secured Gov-Tech projects are in various stages of implementation and onboarding, with progressive revenue contributions expected from Q4 FY2026. The Group is also actively bidding for further Gov-Tech opportunities, which, if secured, could impact FY2027 performance.
• No Significant Unusual Items or Related Party Transactions: There were no unusual items, material changes in estimates, or significant related party transactions during the period.

Shareholder Insights & Potential Price Sensitive Information

• Profitability Surpasses Previous Full Year: The Group’s profit before tax for the nine months already exceeds the entire previous year’s profit by 83.9% – a clear signal of strong operational momentum.
• Gov-Tech Projects May Drive Future Earnings: The successful onboarding of new Gov-Tech projects and ongoing bids for further contracts present substantial upside potential for FY2027 and beyond.
• Consistent Dividend Payouts: The Board’s decision to declare multiple interim dividends within the period demonstrates confidence in cash flows and a commitment to shareholder returns.
• Zero Debt Position: The absence of borrowings strengthens the Group’s balance sheet and reduces financial risk, which is attractive to investors.
• Ongoing Litigation: While the Sri Lankan litigation continues, there is no indication of imminent material financial impact, but investors should monitor the outcome of the 18 June 2026 hearing.
• Capital Expenditure Increase: The jump in capital commitments signals the Group’s intention to support growth and new project implementations, which may lead to further revenue increases in subsequent quarters.
• High Effective Tax Rate: The higher effective tax rates compared to statutory rates may slightly impact net profit, but the Group remains solidly profitable.

Conclusion and Outlook

Scicom (MSC) Berhad has delivered an exceptionally strong financial performance for the third quarter and nine-month period of FY2026, with revenue and profit before tax rising sharply due to robust growth in its BPO segment and successful new project wins. The Group’s financial health is underscored by its debt-free balance sheet and consistent dividend payouts. Looking ahead, management remains optimistic, citing a strong operational pipeline, new Gov-Tech contracts, and ongoing project execution as key drivers for sustained growth. However, investors should remain mindful of higher effective tax rates, the outcome of ongoing litigation, and execution risks typical of new project onboardings.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. All views are based on the unaudited interim report for the third quarter ended 31 March 2026.

Versi Bahasa Malaysia

Sorotan Utama Laporan Suku Ketiga Berakhir 31 Mac 2026

• Peningkatan Ketara Hasil dan Keuntungan: Kumpulan mencatatkan peningkatan hasil sebanyak 46.5% tahun ke tahun kepada RM222.83 juta untuk tempoh sembilan bulan berakhir 31 Mac 2026. Keuntungan sebelum cukai melonjak 129.6% tahun ke tahun kepada RM49.49 juta, melebihi keuntungan sebelum cukai setahun penuh FY2025 sebanyak 83.9%.
• Segmen BPO Memacu Pertumbuhan: Segmen Business Process Outsourcing (BPO) kekal sebagai penyumbang utama hasil, menjana RM222.79 juta untuk tempoh sembilan bulan, meningkat RM70.65 juta berbanding tahun sebelumnya, didorong oleh peningkatan volume transaksi dan projek BPO baharu.
• Segmen Pendidikan: Hasil Pendidikan sebanyak RM37,000, meningkat ketara daripada RM1,000 tahun lalu, terutamanya daripada latihan atas talian.
• Prestasi Suku ke Suku: Hasil suku ketiga meningkat kepada RM79.21 juta dari RM72.50 juta (suku kedua), dipacu projek BPO baharu, walaupun keuntungan sebelum cukai menurun sedikit kepada RM15.71 juta kerana penurunan volume transaksi bagi projek margin tinggi.
• Dividen Kukuh: Tiga dividen interim telah diumum dan dibayar sepanjang tempoh tersebut – RM4.44 juta (1.25 sen/saham, Sep 2025), RM10.66 juta (3.0 sen/saham, Dis 2025), dan RM10.66 juta (3.0 sen/saham, Mac 2026). Dividen interim ketiga 3.0 sen/saham (RM10.66 juta) akan dibayar pada 29 Jun 2026.
• Tiada Pinjaman, Kedudukan Kewangan Kukuh: Kumpulan tidak mempunyai sebarang pinjaman, mencerminkan pengurusan kewangan yang berhati-hati dan kedudukan tunai yang kukuh.
• Kadar Cukai Efektif Tinggi: Kadar cukai efektif 29% (suku) dan 31% (tempoh), lebih tinggi dari kadar statutori 24%, disebabkan ketidakbolehdapatan cukai, pelarasan tahun sebelumnya, dan pengiktirafan elaun modal/bisnes rugi yang sebelum ini tidak diiktiraf.
• Litigasi Berterusan: Kes litigasi legasi dengan Informatics International Limited di Sri Lanka masih berjalan, dengan perbicaraan pra-perbicaraan akan datang pada 18 Jun 2026.
• Komitmen Modal Meningkat: Komitmen modal untuk loji/peralatan meningkat kepada RM3.20 juta (diluluskan & dikontrak) berbanding RM243,000 tahun lalu, menandakan pelaburan dalam kapasiti dan infrastruktur.
• Pemacu Operasi dan Projek Gov-Tech: Projek Gov-Tech baharu sedang dalam pelaksanaan dan dijangka mula menyumbang kepada hasil bermula suku keempat FY2026. Kumpulan juga sedang membida peluang Gov-Tech baharu yang boleh mempengaruhi prestasi FY2027 jika berjaya diperoleh.
• Tiada Transaksi Pihak Berkaitan atau Item Luarbiasa: Tiada transaksi pihak berkaitan penting atau item luar biasa sepanjang tempoh dikaji.

Poin Penting untuk Pemegang Saham & Maklumat Sensitif Harga

• Keuntungan Mengatasi Tahun Kewangan Sebelumnya: Keuntungan sebelum cukai sembilan bulan telah melebihi keuntungan setahun penuh tahun lalu sebanyak 83.9% – satu isyarat momentum operasi yang kukuh.
• Projek Gov-Tech Berpotensi Lonjakkan Pendapatan Masa Depan: Pelaksanaan projek Gov-Tech baharu dan bidaan projek seterusnya boleh menjadi pemacu utama pendapatan masa depan.
• Dividen Konsisten: Pembayaran dividen interim yang konsisten membuktikan keyakinan ke atas aliran tunai dan keutamaan kepada pulangan pemegang saham.
• Kedudukan Tanpa Hutang: Ketiadaan pinjaman mengukuhkan lembaran imbangan dan mengurangkan risiko kewangan.
• Litigasi Berjalan: Kes di Sri Lanka masih belum menampakkan impak kewangan material serta-merta, tetapi pelabur harus memantau keputusan perbicaraan akan datang.
• Peningkatan Perbelanjaan Modal: Lonjakan komitmen modal memberi isyarat Kumpulan sedang bersedia untuk pertumbuhan dengan pelaburan dalam kapasiti dan infrastruktur.
• Kadar Cukai Efektif Tinggi: Kadar cukai tinggi mungkin memberi sedikit impak kepada keuntungan bersih, namun Kumpulan kekal kukuh dari segi keuntungan.

Kesimpulan dan Prospek

Scicom (MSC) Berhad menunjukkan prestasi kewangan sangat kukuh untuk suku ketiga dan sembilan bulan FY2026, dengan pertumbuhan hasil dan keuntungan sebelum cukai yang ketara hasil kejayaan dalam segmen BPO dan projek baharu. Kedudukan kewangan Kumpulan diperkukuh oleh ketiadaan hutang dan pembayaran dividen konsisten. Prospek kekal positif dengan pipeline operasi yang kukuh, pelaksanaan projek Gov-Tech baharu, dan pelaksanaan projek sedia ada. Namun, pelabur perlu mengambil maklum kadar cukai efektif tinggi, status litigasi yang berterusan, dan risiko pelaksanaan projek baharu.

Penafian: Artikel ini hanya untuk tujuan maklumat dan bukan nasihat pelaburan. Pelabur dinasihatkan untuk membuat penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat sebarang keputusan pelaburan. Semua pandangan adalah berdasarkan laporan interim yang belum diaudit bagi suku ketiga berakhir 31 Mac 2026.

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