KUALA LUMPUR: Rakuten Trade Research says that the outlook remains promising for SNS Network Technology Bhd, driven by its recent AI server sales and ongoing expansion in the information and communication technology (ICT) sector.
The research firm anticipates sustained growth supported by ongoing digital transformation in education and commerce, along with regular consumer device upgrades.
SNS secured a substantial order worth RM85.5 million for AI super servers from a leading e-commerce platform in Southeast Asia and Taiwan.
Rakuten Trade said these high-performance servers will be delivered to a data centre in Johor Bahru in August 2024 and highlight SNS's expertise in the AI server market, thus setting a promising platform for future opportunities.
"We are confident that SNS will secure more deals and continue to strengthen its relationship with their esteemed customers," it said.
In addition, Rakuten Trade said SNS has entered into a strategic partnership with the Healthcare Information Management Systems Society (HIMSS), a global advocate for digital health solutions.
Although still in its early stages, the firm said the potential is immense, positioning SNS as a pioneer in this transformative initiative.
"Therefore, we anticipate SNS to meet its target of delivering 300 units of AI super servers in FY25, with aspirations to double this figure next year.
"Consequently, we have upgraded our FY26/FY27 earnings projections by three per cent and 1 per cent, respectively.
"We maintain our buy rating with an elevated target price of RM1.23 from 54 sen," it added.