KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG) (Frankfurt:H0T), a diversified holding company, has secured a $16 million contract through its subsidiary V Gallant Sdn Bhd to build an advanced artificial intelligence (AI) enabled live streaming platform for a Malaysian e-commerce company. This platform is expected to enhance the user experience by integrating NVIDIA (NASDAQ:NVDA) H200 Tensor Core GPUs and AI software for high-quality streaming and interactive digital human solutions.
The platform will provide a host of automated functions, including content moderation, personalization, audience engagement, and streamlining production processes. It is designed to be compatible with major platforms such as Tencent Holdings (OTC:TCEHY) Ltd., Meta Platforms (NASDAQ:META), Inc., TikTok, and Instagram, aiming to create more profound connections between content creators and their audiences.
The e-commerce player, which has contracted VCI Global, currently boasts nearly 3 million registered users and over 2,000 merchants on its platform as of September 25, 2024. The platform also offers instant rebates and affiliate cashback programs and supports both online and physical retail transactions with its e-payment solution.
The Southeast Asia e-commerce market, where the Malaysian company operates, is projected to grow significantly. According to Statista, the market is expected to reach around $120 billion in revenue by 2029, with a compound annual growth rate of 10.42% from 2024 to 2029. The number of users is anticipated to exceed 260 million by 2029, with an average revenue per user estimated at $680.
Dato Victor Hoo, Group Executive Chairman and CEO of VCI Global, expressed confidence in the company's AI division, citing the contract as a significant step forward amidst increasing competition in the AI space. He highlighted the alignment of their innovation efforts with the growing demand for advanced digital marketing tools in a major global digital market.
VCI Global operates across various sectors, including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, with a presence in the Asia-Pacific region, the United States, Europe, and the Middle East.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those projected due to various factors, including market conditions and the company's ability to achieve its goals.
In other recent news, VCI Global has seen significant advancements in its financial performance and business operations. The company reported a robust financial performance for the first half of 2024, with a 44% increase in revenue, totaling $13.7 million, and a 25% rise in net income, reaching $5.4 million. Particular growth was noted in the Business Strategy Consulting and Fintech segments, which saw revenue surges of 151% and 183% respectively.
VCI Global has concluded its At-The-Market equity offering program, managed by H.C. Wainwright & Co., raising approximately $1.77 million. The termination is expected to allow the company to explore more advantageous financing alternatives in line with its strategic growth plans. Furthermore, VCI Global has secured an $18 million contract to list four Malaysian companies on the Nasdaq stock exchange, a deal expected to generate revenues of $18 million over the next 14 months.
The company has also completed a secondary listing on the Frankfurt Stock Exchange and announced a $10 million share buyback program. In terms of leadership, VCI Global recently appointed Victor Lee as its new executive director, bringing his 28 years of experience in the private equity sector to the company. Additionally, through its subsidiary V Gallant Sdn Bhd, VCI Global is now offering advanced AI computing solutions, integrating NVIDIA H200 Tensor Core GPUs and AI software to enhance operational efficiency. These developments are part of VCI Global's ongoing growth and transformation journey.
InvestingPro Insights
VCI Global Limited's recent $16 million contract win aligns well with its impressive financial performance and market position. According to InvestingPro data, the company has shown strong revenue growth, with a 89.38% increase in the last twelve months as of Q2 2024. This growth trajectory supports VCI Global's ability to secure significant contracts like the AI-enabled live streaming platform project.
The company's gross profit margin of 70.86% in the same period is particularly noteworthy. An InvestingPro Tip highlights that VCI Global has "impressive gross profit margins," which could provide the financial flexibility needed to invest in cutting-edge AI technologies and deliver on large-scale projects.
Despite these positive indicators, it's important to note that VCI Global's stock has faced significant challenges. Another InvestingPro Tip reveals that the stock is "trading near 52-week low" and has "taken a big hit over the last week." This market performance contrasts with the company's operational achievements and may present an opportunity for investors considering the company's growth prospects in the AI and e-commerce sectors.
For readers interested in a deeper analysis, InvestingPro offers 15 additional tips for VCI Global, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.