KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a diversified holding company, has confirmed a new investment from Legacy Credit Sdn Bhd, a prominent Malaysian financial institution. Legacy Credit has acquired more than a 5% stake in VCI Global through a private placement worth $2.5 million, effective as of April 10, 2024.
The strategic investment by Legacy Credit, which specializes in flexible financial solutions for SMEs and individuals, is seen as a vote of confidence in VCI Global's potential for growth and innovation. Dato Victor Hoo, Group Executive Chairman and CEO of VCI Global, expressed enthusiasm for the partnership, anticipating it to expedite the company's expansion and enhance stakeholder value.
Mr. Nelson Goh, Director and CEO of Legacy Credit, also conveyed optimism about the investment, aligning Legacy Credit's vision with VCI Global's commitment to innovation in various sectors, including consulting, fintech, AI, robotics, cybersecurity, and gamification.
VCI Global, headquartered in Kuala Lumpur, operates mainly in Asia with a significant presence across the Asia Pacific, the United States, Europe, and the Middle East.
The company offers consulting services in various domains and runs a proprietary financing platform, along with a secured messaging platform for governments and organizations. It actively invests in and develops technologies related to AI, robotics, and gamification.
This investment is part of VCI Global's ongoing strategy to grow its business and follows a series of initiatives aimed at expanding its reach and capabilities in the technology sector. The company has cautioned that the forward-looking statements in the press release are subject to various risks and uncertainties and may differ materially from actual future results.
The information for this report is based on a press release statement from VCI Global Limited.
InvestingPro Insights
VCI Global Limited's recent strategic investment from Legacy Credit Sdn Bhd underscores the company's promising position in the market. With a current market capitalization of $44.49 million, VCI Global is navigating the financial landscape with a notable gross profit margin of 57.64% over the last twelve months as of Q1 2023.
This indicates a strong ability to generate revenue over and above the cost of goods sold, which is a positive sign for investors looking at the company's profitability.
Moreover, VCI Global's P/E ratio stands at an attractive 7.26 when adjusted for the last twelve months as of Q1 2023, coupled with a PEG ratio of 0.6, suggesting that the stock may be trading at a low price relative to its near-term earnings growth.
These metrics are particularly relevant for investors seeking growth at a reasonable price. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability and potential resilience against market volatility.
Despite recent price fluctuations, with a 53.57% drop over the last six months, the company has been profitable over the last twelve months. This could potentially present a buying opportunity for value investors. For those interested in a deeper analysis, InvestingPro offers additional insights and tips on VCI Global, which can be accessed with a special offer. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 more InvestingPro Tips available that could help investors make a more informed decision regarding their investment in VCI Global.
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