02 MAY 2019, PETALING JAYA: After a tough financial year 2018 (FY18), Heitech Padu Bhd is looking towards FY19 with renewed optimism.
The information technology services provider has put in place a strategy to get the company back on track after reporting a wider net loss of RM36.8mil in FY18, from RM15.3mil in the previous year.
For a start, HeiTech Padu said it has reorganised the companies under the group into three cores, with each core set to meet specific strategic business objectives.
The three cores are to strengthen the IT business and continue supporting customers’ business via innovative products, quality delivery and services; maximise returns from investee companies; and explore new businesses and opportunities.
“Our focus is to put HeiTech Padu back on track while remaining true to our core values and purpose in becoming the trusted technology partner to our customers.
“I believe with the 3-Core strategy, we would be able to focus on areas that we can improve and it would enable us to respond more effectively to market demand, threats and potentials,” group president and executive deputy chairman Datuk Seri Mohd Hilmey Mohd Taib said in the group’s latest annual report.
In previous years, companies operating under the group had been clustered and reported based on their nature of business.
The group said the companies were categorised by their activities and risk profiles, and reported as three segments – information technology, mailing and document processing services and engineering works.
However, the group said political, economic and sociological factors that were shaping the current industry and business landscape had impacted the management’s decision-making process.
In order to keep up with these challenges, HeiTech Padu decided to revise the way the companies were categorised.
As a result, the companies are now grouped to align with the group’s strategic direction.
Thus, it said, the group’s segments will now be reported as Core 1, Core 2 and Core 3.
Core 1 consolidates HeiTech Padu’s brands in the information technology sector, while Core 2 leverages on the multi-offerings and multi-industries of the companies operating within the group, which range from mailing and document processing services, to automotive or insurance claims platform services and mobile applications.
Core 3, on the other hand, was set up to pave the way for the group to explore potential business within existing markets as well as in new markets.
“In light of constant changes and volatility in the social, economic and political climates, the group understands the need for a dedicated team to explore and discover new potential and possibilities,” it said in the report.
Mohd Hilmey said the year 2018 had ended in a way that was not favourable to many businesses.
Global and local economic uncertainties, he said, had impacted businesses in areas ranging from operational issues of impairment, higher operating costs, and a reduction in revenue and margins, to strategic issues of corporate maneuvering.
He expects these uncertainties to persist in 2019.
“Nevertheless, HeiTech Padu is optimistic that the ICT industry would remain an attractive sector with good opportunities,” he said.He pointed out that while the net loss incurred by the group last year had widened, its earnings before tax, depreciation and amortisation, impairment, interest and taxation was in positive territory, at RM11.6mil.
This, he said, demonstrated the group’s resilience in facing “an extremely tough business environment”.