VSTECS 2024 Q1 Quarterly Report Highlights

Highlight 1: ICT service revenue (cloud services and data centers) compared to the same quarter last year61% increase

Management stated in a statement that strong growth was due to cloud and data center services

Highlight 2: Cloud services will generate recurring revenue for the company, and management indicated plans to launch several data center services in the next few months

Highlight 3: New products will be unveiled this year (new growth engine)

Summary: Among these three highlights, shareholders value the most recurring revenue from cloud and data center services. Investors familiar with VSTECS know that the company's main business is PC agents and enterprise system services. Among them, the PC agency business, which accounts for the largest share of turnover, also has a very low profit margin.

Shareholders hope that cloud services and data center services can improve the company's low profit margins in the future and gradually become the company's main business. After all, businesses that can generate recurring revenue can provide stable cash flow, offsetting the company's cyclical influence on PC agents.

As for how the stock price will react tomorrow, let's leave it up to the market to decide. Will the overall decline in turnover give up last week's increase? Shareholders also have no ability to anticipate tomorrow. Shareholders only know that friends who persist in their time on the investment path “nurture” companies with growth value. What's left is to eat, drink, and wait patiently for long-term value to emerge.