KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a Kuala Lumpur-based diversified holding company, has issued a revenue guidance for fiscal year 2024, predicting a significant increase in net sales and operating income. This announcement comes on the heels of a robust fiscal year 2023, where the company saw a record total revenue of $19.8 million, marking a 145% year-over-year growth.
The company's gross profit also saw a notable rise, increasing by 159% year-over-year to $16.4 million, while net income reached $7.2 million, a 57% growth from the previous fiscal year. These financial highlights reflect successful expansions in VCIG's capital market consultancy and technology ventures, with its business strategy consultancy revenue growing by 265% to $14.7 million in 2023.
VCI Global's technology development, solutions, and consultancy segment reported a 13% revenue increase to $4.5 million in fiscal year 2023, supported by a healthy gross profit margin of 94%. Executive Chairman and CEO Victor Hoo expressed confidence in the company's business model and its trajectory towards becoming a high-performing company.
Looking forward to fiscal 2024, VCI Global is setting a positive outlook despite the uncertain consumer and macroeconomic environment. The company anticipates net sales to increase by approximately 65% on a 52-week basis and is projecting an operating income growth range of 20% to 23%. The forecasted gross margin is around 85%, with operating expenses estimated at approximately $18.8 million and an effective tax rate of about 5%.
VCI Global operates through subsidiaries focused on consulting, fintech, AI, robotics, cybersecurity, and gamification, with operations primarily in Asia and significant visibility across the Asia Pacific, the United States, Europe, and the Middle East. The company offers various services, including a proprietary financing platform and a secured messaging platform serving governments and organizations.
The press release includes forward-looking statements subject to risks and uncertainties and cautions that actual results could differ materially due to various factors. This news is based on a press release statement, and the company has not updated any forward-looking statements since the date of the press release.
InvestingPro Insights
VCI Global Limited's (NASDAQ:VCIG) recent financial performance paints a picture of robust growth and potential, bolstered by impressive revenue figures. According to the latest InvestingPro Data, the company's revenue for the last twelve months as of Q4 2023 stood at $19.78 million, representing a remarkable year-over-year growth of 155.27%. This aligns with the company's positive revenue guidance for fiscal year 2024, suggesting a continuation of this upward trajectory.
The company's ability to generate profit is also notable, with a gross profit of $12.27 million and a gross profit margin of 62.0% for the same period. Such robust margins are indicative of the company's efficiency and its potential to sustain profitability, a key factor that may interest investors considering the company's projected sales increase and operating income growth for the upcoming fiscal year.
InvestingPro Tips for VCIG highlight that the stock is currently trading at a low earnings multiple, with a P/E Ratio of just 3.59, suggesting that it may be undervalued relative to its earnings. Additionally, the stock is in oversold territory according to its Relative Strength Index (RSI), hinting at a potential rebound if market sentiment shifts. Investors seeking more insights can find a total of 15 additional InvestingPro Tips for VCIG, which could provide a deeper understanding of the investment opportunity this company may present.
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