VCI Global projects 41% revenue jump, plans Q3 IPO for subsidiary

Published 03/06/2025, 22:06
VCI Global projects 41% revenue jump, plans Q3 IPO for subsidiary

KUALA LUMPUR - VCI Global Limited (NASDAQ: VCIG), a diversified holding company with interests in various tech sectors and currently valued at $10.19 million market cap, has announced its financial projections for the fiscal year ending December 31, 2025. According to InvestingPro data, the company maintains impressive gross profit margins of 54.43% and holds more cash than debt on its balance sheet. The company anticipates a significant increase in its financial performance, targeting about 41% growth in revenue and a 30% rise in net profit compared to the previous year. This growth projection comes as InvestingPro analysis suggests the stock is currently undervalued, trading at notably low multiples with a P/E ratio of 0.05 and a Price/Book ratio of 0.12. For deeper insights into VCIG’s valuation and 15+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.

The expected growth is attributed to the expansion of the company’s technology and consulting services, as well as the execution of strategic milestones. One of the key initiatives highlighted by VCI Global is the planned initial public offering (IPO) of its capital market consulting arm, V Capital Consulting Group Limited (VCCG), slated for the third quarter of 2025. The company’s strong financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis, positions it well for this strategic move. This move aims to enhance the subsidiary’s visibility, unlock shareholder value, and secure growth capital for its advisory services and IPO execution business.

VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, emphasized the IPO as a significant step in the company’s corporate journey, aligning with the mission to scale each business line with operational independence and capital access. He also noted the company’s strong performance in AI and cybersecurity offerings, reinforcing its position to achieve both financial growth and strategic goals.

The company’s 2025 outlook includes contributions from several high-growth initiatives, such as the commercialization of its encrypted AI data platform, the introduction of GPU-as-a-service infrastructure, and the expansion of cross-border fintech and energy-related ventures.

In terms of financial specifics, VCI Global reported a 41% projected increase in revenue to approximately $39.2 million, a 50% increase in the cost of service to about $7.4 million, and a 39% rise in gross profit to nearly $31.8 million. Operating expenses are expected to grow by 41%, while EBIDTA is projected to increase by 38% to roughly $12.7 million. Net profit is anticipated to climb by 30% to close to $9.9 million.

The forward-looking statements in the press release are subject to various risks and uncertainties, including customer acceptance of new products, competitive pressures, and general economic conditions. These projections are based on current expectations and may change due to factors beyond the company’s control.

This article is based on a press release statement from VCI Global Limited.

In other recent news, VCI Global Limited has introduced Project QG, an infrastructure platform aimed at enhancing data sovereignty and monetization for governments and institutions. The project is moving into the proof-of-concept phase and combines AI-driven hardware encryption, zero-trust computing, and blockchain validation. Meanwhile, VCI Global’s fintech subsidiary, Credilab, has secured a $1 million investment from Triple Helix Capital Ltd to expand its digital lending operations in Southeast Asia. Credilab reported a 116% increase in revenue year-over-year for the first half of 2024. Additionally, VCI Global announced a reverse stock split to comply with Nasdaq’s minimum bid price requirement, reducing shares from about 54.5 million to roughly 2.8 million. The company also launched DeepAI, a plug-and-play AI infrastructure aimed at simplifying the adoption of large language models for businesses. DeepAI offers various tiers to cater to different organizational needs, emphasizing data sovereignty and security. Lastly, VCI Global has stated it has minimal exposure to new U.S. tariffs, continuing its strategy to facilitate Southeast Asia’s entry into U.S. capital markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.