$SNS (0259.MY)$ Rakuten Trade has maintained its 'buy' ratin...

$SNS(0259.MY)$ Rakuten Trade has maintained its 'buy' rating for SNS Network Technology Bhd (KL:SNS) at 84 sen, with a higher target price of RM1.23 (from 54 sen), and rolled over its valuation to the financial year ending Jan 31, 2026 (FY2026), based on price-earnings of 25 times.

In an investment idea note on Wednesday, the research house said SNS is poised to ride the artificial intelligence (AI) server boom.

Rakuten highlighted that SNS had secured a substantial order worth RM85.5 million for AI super servers from a leading e-commerce platform in Southeast Asia and Taiwan.

It said the high-performance servers will be delivered to a data centre in Johor Bahru in August this year, highlighting SNS' expertise in the AI server market and setting a promising platform for future opportunities.

“We are confident that SNS will secure more deals, and continue to strengthen its relationship with esteemed customers,” the research house said.

Rakuten said that in addition, SNS had entered into a strategic partnership with Healthcare Information Management Systems Society (HIMSS), a global advocate for digital health solutions.

It said as HIMSS' first digital health technology partner in Malaysia, SNS will deploy HIMSS-developed tools like the Electronic Medical Record Adoption Model to standardise medical records across hospitals.

“We anticipate SNS to meet its target of delivering 300 units of AI super servers in FY2025, with aspirations to double the figure next year.

“Consequently, we have upgraded our FY2026 earnings projection by 3%, and FY2027's by 1%.

“We believe SNS’ outlook remains bright, driven by new AI server sales and continued growth in its existing information and communications technology (ICT) business, fuelled by consumer device refresh cycles, and an ongoing digital transformation within the education and commerce segments,” the house said.