KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a diversified holding company, has been awarded a contract worth approximately $24 million to provide AI hardware and software for a data center project in Malaysia. The conditional Letter of Award was issued by Hexatoff Group Sdn. Bhd. for the first phase of a data center in Enstek City.
Under the agreement, VCI Global's subsidiary, V-Gallant, will supply 640 units of NVIDIA (NASDAQ:NVDA) H200 Tensor Core GPUs as part of the AI computing system for the data center. This partnership aligns with Malaysia’s strategic vision to become a leading hub for AI and digital infrastructure in Southeast Asia.
Hexatoff Group, a turnkey solutions provider with the nation’s highest-grade construction license, is spearheading this development. The project is part of a broader trend in Malaysia, which has seen significant growth in the data center sector. The Malaysian Investment Development Authority (MIDA) has approved 12 data center investment projects from 2021 to June 30, 2024, totaling about $21 billion in value, with six projects already operational.
The collaboration with Hexatoff Group is expected to enhance Malaysia's reputation as a key growth market for data centers in the ASEAN region. Major global companies like Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) have made substantial investments in Malaysia, establishing cloud regions and contributing to the country's digital transformation.
VCI Global's CEO, Dato' Victor Hoo, commented on the partnership, highlighting its support for Malaysia's innovation and sustainable growth. The company's operations span across various sectors including capital market consultancy, fintech, real estate, AI & Robotics, and cybersecurity, with a strong presence in the Asia-Pacific region, the United States, Europe, and the Middle East.
This press release contains forward-looking statements about the company's future growth and business prospects. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
The information for this article is based on a press release statement.
In other recent news, VCI Global Limited has been making significant strides in its financial performance and business operations. The company recently secured a $16 million contract through its subsidiary, V Gallant Sdn Bhd, to build an AI-enabled live streaming platform for a Malaysian e-commerce company. The platform is expected to enhance user experience by integrating NVIDIA H200 Tensor Core GPUs and AI software.
In addition, VCI Global has appointed Victor Lee as its new executive director, bringing his 28 years of experience in the private equity sector to the company. The company also concluded its At-The-Market equity offering program, managed by H.C. Wainwright & Co., raising approximately $1.77 million. This termination is expected to pave the way for the company to explore more advantageous financing alternatives aligned with its strategic growth plans.
Furthermore, VCI Global secured an $18 million contract to list four Malaysian companies on the Nasdaq stock exchange. This deal, in collaboration with Legacy Corporate Advisory Sdn Bhd, is projected to generate revenues of $18 million over the next 14 months.
These developments are part of VCI Global's ongoing growth and transformation journey, which also includes a secondary listing on the Frankfurt Stock Exchange, a $10 million share buyback program, and the expansion of its AI computing solutions through the integration of NVIDIA H200 Tensor Core GPUs and AI software.
InvestingPro Insights
VCI Global Limited's recent $24 million contract award aligns with its impressive financial performance. According to InvestingPro data, the company has shown strong revenue growth, with a 89.38% increase in the last twelve months as of Q2 2024. This growth is reflected in the company's robust gross profit margin of 70.86%, indicating efficient operations and potentially strong pricing power in its diverse business segments.
Despite the positive contract news, VCI Global's stock has faced significant headwinds. InvestingPro Tips reveal that the stock has performed poorly over the last month, with a price total return of -56.09%. This short-term volatility contrasts with the company's solid fundamentals, such as holding more cash than debt on its balance sheet and having liquid assets that exceed short-term obligations.
Interestingly, VCI Global is trading at a low Price / Book multiple of 0.1, which could suggest that the stock is undervalued relative to its assets. This metric, combined with the company's profitability over the last twelve months, may present an opportunity for investors looking at the long-term potential of VCI Global's diverse operations and its positioning in growth markets like AI and data centers.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for VCI Global, providing a deeper understanding of the company's financial health and market position.
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