This article was first published on Edge Malaysia Weekly from April 28, 2025 to May 4, 2025
With artificial intelligence increasingly being adopted in the domestic market, SNS Network Technology Bhd (KL: SNS) believes that the recent “AI Factory” setup can boost the graphics processing unit (GPUAAS) business.
Meanwhile, the IPOH-based Information and Communications Technology (ICT) Solutions Provider is considering selling 500 AI Super Servers for the current fiscal year ending January 31, 2026 (FY2026). The 300 unit goal was not met due to long sales cycles due to long negotiations with clients and strict due diligence on the part of clients.
In an interview with The Edge, co-founder and managing director Ko Yun Hung says that the completion of more data centers this year is based on a higher sales target. The average selling price per AI Super Server is RM1.5 million, depending on customer specifications. Among the recent notable work secured by the group is RM269.3 million contracts to supply server systems to private local customers.
KO believes that substantial revenue contributions from sales of AI Superserver and GPUAAS are expected to begin over the next few years. GPUAAS makes it possible to utilize powerful computing resources for complex tasks such as AI, machine learning, and data analysis.
“We see that things are progressing healthily as far as the industry as a whole is concerned. The only uncertainty is the external challenge. As business owners, we rely on the government to make the best deal and see what happens,” he says.
The AI Spreading Rule places Malaysia in Tier 2 and limits access to advanced AI chips such as GPUs to up to 50,000 units over two years.
Nevertheless, with the development of robust data centers in the country, social media has received enquiries about the data center fitout business. This includes the operation and management of data center facilities.
He believes the launch of an “AI Factory” will lift the group’s outlook as organizations begin to explore ways to transform their businesses. Equipped with 64 GPUs, the facility aims to promote AI adoption and subsequently increase productivity and efficiency.
“Some customers may not know how to start deploying AI, for example, ChatGpt. It looks very common, but not everyone really knows how to use it. You can only use 1% or 2% of that feature,” explains Ko.
According to him, GPUAAS (cloud computing services) eliminates the need for clients to invest and maintain expensive hardware. This helps organizations optimize their budgets while leveraging advanced AI capabilities. With built-in data sovereignty, robust security and protection against intellectual property leaks, the service keeps sensitive information safe.
“We have set up the entire infrastructure with a total of 64 GPUs, 32 of which are commercial and another 32 for POCs,” Ko said.
In line with “AI Factory”, social media will partner with NVIDIA to launch Malaysia’s first fully managed AI cloud service. It features NVIDIA hopper GPU and Dell servers.
In US mutual tariffs, KO says such a move could reduce ICT industry payout and market demand if a global economic slowdown occurs.
“We may not see a direct impact, but the indirect impact is there. There’s a lot of uncertainty when you go down the entire supply chain. That’s not really a disadvantage for social media, but that’s a new scenario you have to deal with,” he says.
“We don’t sell our products directly to the US, but our customers may sell directly to the US market. So our customers at the end may put a hold on purchase. That’s our concern.
In 2025, Malaysia accounted for 95% of total social media revenue, while Singapore and Hong Kong accounted for 2.5% and 0.8%, respectively. The company was listed on the Bursa market in Malaysia in September 2022 and raised RM90.72 million before transferring its listing status to the main market in June 2024.
KO is set to open 10 retailers within three years of the first public offering (IPO), and KO said:
The company currently operates 58 brand stores, seven multi-brand concept stores and seven more commission counters in Malaysia. Apart from selling ICT products, he is also involved in providing ICT services and solutions, repairing and related services for devices, and selling broadband services.
The group sells ICT products online and through retail stores such as ITWorld, Gloo, Notebook Plaza, and sells them through third-party markets, while commercial channels target businesses, government agencies and educational institutions.
SNS reported flat financial performance for fiscal year 2025, reporting net profit against RM30 million RM33 million against RM31.96 million in the previous year, primarily due to higher sales and distribution costs compared to RM33.81 million in the previous year.
KO explains that the higher costs are due to the establishment of additional teams supporting the enterprise business segment to address the challenges facing customers when it comes to deploying AI. He points out that consumer sales have been extremely encouraging in 2025, and e-commerce sales have almost doubled due to changes in buying behavior.
With high demand in the consumer segment, he hopes that social media will register better financial performance in 201026. The company paid a higher dividend of SEN 0.87 in 2025 compared to 0.75 SEN in 201024.
“This year, we are looking at a number of factors. Consumer sales are back, the enterprise segment is supported by AI factories, and more data centers are ready. I think this is the harvest time for us,” says Ko.
As at the end of January 2025, social media was in a net cash position of RM27.8 million, with fixed deposits, cash and bank balances of RM88.4 million, totaling borrowings of RM60.6 million.
After touching on a record-high 96 sen during a data center hype in July 2024, its stock now fell 57.3%, closing at 41 SEN last Thursday, with a market value of RM687.1 million room. The stock is only covered by Rakuten Trade, which had a target price of RM1.23 last July.
KO holds direct and indirect stakes of 4.432% and 26.053% on social media, respectively. Executive Director Kelvin Pion has direct stakes of 4.438% and 26.053% indirect interest, while executive director Siow Wei Ming has 6.623% indirect stakes and 0.095% indirect stakes.
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