SNS Network Technology Bhd
Buy. Target price: RM0.54
MALAYSIA’S favourable conditions, including abundance of land and power resources, excellent international connectivity, and supportive government policies, is now an attractive destination for data centre (DC) investments. Juwai IQI’s report highlights that Malaysia is the fastest-growing market, projecting a remarkable 600% growth in AI-driven data centre expansion over the next five years.
Recognising the potential of AI across various sectors in Malaysia, SNS positions itself as a facilitator of AI adoption. Acting as a liaison between server manufacturers and buyers, SNS plays a pivotal role in enabling AI integration in Malaysia. While not directly involved in construction, SNS excels in other segments such as data centre fit-out, testing, commissioning, and operation management. By offering a comprehensive suite of services, including cloud computing, data analytics, and AI workload optimisation, SNS addresses the diverse business needs. Its recent partnership with Supermicro aligns well with Supermicro’s expansion plans in Johor, further solidifying SNS’s position in the market.
Malaysia currently hosts over 40 operational DCs, each with capacities ranging from 100MW to 150MW. However, upcoming DC projects indicate an anticipated additional capacity of 1,400MW over the next five to ten years. Considering that each GPU server can only support 10kW of DC usage, the potential for SNS to seize opportunities in this expanding market is significant.
SNS Network Technology is primarily engaged in the provision of ICT solutions across Malaysia.
Backed by the ongoing AI frenzy, BUY with a TP of RM0.54 based on FY25F PE of 15x, in line with industry peers.