More growth ahead for Cloudpoint

CLOUDPOINT Technology Bhd is eyeing more mergers and acquisitions to strengthen its position in new growth segments such as artificial intelligence (AI).

It also wants to complement its existing business as an information technology or IT services provider and evolve to an end-to-end technology, cloud and digital infrastructure specialist.

It has just finished its transfer from the ACE Market to the Main Market, which will help increase its visibility and promote its company profile.

Its strong buffer with a net cash capital structure and minimal borrowings allows it to scout for good acquisitions.

Cloudpoint executive director and chief executive officer Datuk Wira Choong Wai Hoong says the company is hungry for growth and is seeking more acquisitions.

“I always believe acquisitions should be strategic and create value for us. These should complement our existing business.

“For example, the acquisition of a data centre specialist last year enabled us to expand our service solutions. Before this, we were just focused on network and computing storage sites for data centres,” Choong tells StarBiz 7.

In February last year, Cloudpoint acquired a 75% equity interest each in Unique Central Sdn Bhd or UCSB and Uniqcen Sales & Services Sdn Bhd or USSSB for a total of RM26.78mil cash.

This enabled it to expand into hardware for data centres such as data cabling and fibre optic works, as well as mechanical and electrical or M&E services.

“We can now provide end-to-end data centre solutions including power, M&E and cabling. We secured a number of projects with the new capabilities. Our strong cash flow and gearing position helps support acquisitions,” he says.

Cloudpoint’s early focus on financial services had facilitated its growth thus far by assisting its customers to become more data-driven and cyber-resilient.

“This is a cornerstone of our long-term success.

“Operating in some of the hottest sectors of the technology space, Cloudpoint is well-positioned to capture opportunities in AI, cybersecurity and data centre solutions, while continuing to deliver innovation and drive sustainable growth,” he says.

Choong says the company’s recent transfer to the Main Market was necessary and has improved its profile and visibility among investors, providing it better access to capital.

“We are optimistic about growth, and the underlying trajectory of our business remains strong. Our long-term enterprise relationships and recurring service contracts give us solid visibility.

“Cloudpoint is well-positioned to capture the next wave of digital and AI-driven opportunities,” he says.

In its second quarter ended June 30 (2Q25), net profit grew 6% year-on-year (y-o-y) to RM5.51mil, as revenue grew by 44.22% y-o-y to RM45.59mil. Administrative expenses and selling and distribution expenses also rose in tandem.

The company is currently negotiating for several sizeable projects for implementation by the first half of next year.

Choong says the group has a healthy order book of over RM100mil until June 30.

“Most of our projects are on a purchase order basis, with the majority typically delivered over six to nine months. We replenish our order book consistently,” he says.

“Our current order book provides solid earnings visibility for the coming quarters.

“Beyond our core strength in network infrastructure, we are also pursuing larger opportunities in the digital applications space with ServiceNow and new projects within the data centre segment, which we see as key growth areas moving forward,” he adds.

He also plans to grow Cloudpoint’s recurring revenue to give it earnings buffer and stability.

Choong remains confident of Cloudpoint’s outlook, noting the company counts on its longstanding client relationships and proven track record as its key advantages.