Hong Chew Eu's comment on SYSTECH. All Comments

Hong Chew Eu
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Systec – has the market given up on its growth?

Over the past 5 years, Systech shifted from being primarily a provider of software and e-business solutions to focusing on AI, IoT, digital transformation, and cybersecurity. It divested its loss making e-business solutions and acquired capabilities in digital transformation and AI

These strategic changes reflect an adaptation to evolving market demands and a drive toward long-term growth. These acquisitions, together with its focus on high-growth areas like IoT, and cybersecurity and operational efficiencies, has help to drive revenue growth in recent quarters as can be seen in the chart.

https://i.postimg.cc/TwmHRYKM/Systec.png

The strange thing is that the market price has come down since Sep 2023 shown below. Is the market suggesting that these growths cannot be sustained since Systec falls into the high-investment risk, poor business fundamental quadrant on the Fundament Mapper?

Apart from continue revenue and earnings growth, look out for the following in the next few quarters to asses that growth is sustainable

• A diversified customer base

• Product innovation

• Organic growth
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