KUALA LUMPUR (Mar 5): Sunway Bhd is embarking on a five-year IT modernisation plan, a multi-million ringgit investment which will result in cost savings for the diversified group.
Sunway (fundamental: 1.5; valuation: 1.2) group president Datuk Chew Chee Kin said the company would collaborate with IBM to deploy the IBM Connections Cloud programme to transform Sunway's IT and business infrastructure.
"We made a decision to invest in cloud-based solutions to immediately facilitate greater work efficiency and collaboration across our businesses," Chew told reporters here today after announcing the collaboration.
He said the deployment of the IBM Connections Cloud would be undertaken by Hitachi Sunway Information Systems Sdn Bhd, a joint venture between Hitachi Systems Ltd and Sunway Technology Sdn Bhd.
The IT modernisation plan of Sunway, the businesses of which include construction, property and education, comes at a time when the group has registered weaker financials.
Sunway's net profit fell to RM743.25 million in financial year ended December 31, 2014 from RM1.49 billion a year earlier. Revenue was higher at RM4.84 billion versus RM4.72 billion.
At 12:30pm, Sunway shares fell one sen or 0.3% to settle at RM3.47 for a market capitalisation of RM5.98 billion.
The stock had gained 5% this year versus the FBM KLCI's 3% advance.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)