KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a diversified holding company, has announced a strategic investment of up to $30 million in TalkingData Group Holding Limited, one of Asia's major big data analytics providers. This move positions VCI Global as a substantial shareholder in TalkingData and grants the company exclusive rights to TalkingData’s AI data products and services in Southeast Asia.
The partnership is expected to enhance VCI Global’s presence in the data analytics sector, which is experiencing rapid growth in the region. TalkingData, which serves global brands including Google (NASDAQ:GOOGL) and Nike (NYSE:NKE), is backed by investors such as Softbank’s SB China Venture Capital and JD (NASDAQ:JD).com. The company is also contemplating a public listing in the United States in the near future.
Last year, TalkingData was valued at $1.13 billion during a funding round led by CR Capital. The current investment round includes participation from R.C.W. Capital Limited from Hong Kong.
VCI Global, headquartered in Kuala Lumpur, operates in consulting, fintech, AI, robotics, and cybersecurity across Asia Pacific, the United States, Europe, and the Middle East. Its technology arm offers a proprietary financing platform and a secured messaging platform serving various clients, including governments and organizations.
TalkingData's CEO, Leo Cui Xiaobo, expressed enthusiasm for the partnership with VCI Global, emphasizing the opportunity to expand in Southeast Asia. Dato’ Victor Hoo, CEO of VCI Global, also highlighted the strategic nature of the investment, aiming to drive innovation and strengthen market leadership.
The information about this investment is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially from those projected.
In other recent news, VCI Global Limited has experienced significant growth in its fiscal year 2023, with a 145% increase in revenue to $19.8 million and a 57% rise in net income to $7.2 million. The company has also issued a revenue guidance for fiscal year 2024, predicting a substantial increase in net sales and operating income.
In addition to these financial strides, VCI Global has announced a strategic collaboration with Treasure Global Inc to upgrade the latter's e-commerce platform, ZCITY App, through its subsidiary, Credilab Sdn. Bhd.
The partnership aims to transform the ZCITY App into an AI-driven Super App, integrating advanced financial services and secured messaging technology. Moreover, VCI Global has also revealed plans to establish a network of artificial intelligence computing data centers equipped with high-performance water-cooled H200 Graphic Processing Units.
The first center is set to be constructed in Malaysia by 2025, with expansion into Europe and the United States planned for the same year. These recent developments are part of VCI Global's ongoing efforts to expand its suite of financial services and technology offerings.
InvestingPro Insights
VCI Global Limited's (NASDAQ:VCIG) strategic investment in TalkingData Group Holding Limited not only expands its footprint in the burgeoning data analytics field but also aligns with the company's robust financial health.
According to InvestingPro data, VCI Global boasts a market capitalization of $38.8 million, highlighting its solid position in the market. Furthermore, the company's impressive gross profit margin of 62.0% for the last twelve months as of Q4 2023 underscores its financial efficiency and the potential for sustained profitability.
Moreover, VCI Global's commitment to innovation and growth is mirrored in its financial metrics, such as the substantial revenue growth of 155.27% during the same period. This indicates a strong upward trajectory in the company's earnings capability. VCIG's price-to-earnings (P/E) ratio stands at a modest 5.13, suggesting that the stock could be undervalued relative to its earnings potential—a factor that savvy investors often look for.
An InvestingPro Tip worth noting is that VCIG holds more cash than debt on its balance sheet, providing the company with financial flexibility to pursue strategic investments like the one in TalkingData without compromising its liquidity. Furthermore, VCIG's stock price has experienced a significant decline over the past year, which, alongside its low earnings multiple, might present an attractive entry point for investors.
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