Mustek, a computer company, disclosed its heightened dividends by 40% (28c), which is driven by the expansion of its sales, particularly brought by its Asus, Acer, and Lenovo product lines.
The results for the year to end-June period declared that the sales of Mustek desktop computers are exhibiting rebound and retrieval due to the higher demand from corporate and consumer bases. Consumers lately called for desktop computers having high-performing processors and larger screens, which tablets cannot equal when it comes to accomplishing tasks. The period also demonstrated a 13.4% increase in profit (R4.76bn). The earnings per share (EPS) surged by 38.3% (100.72c).
The biggest contributor for the acquirements of SA technology is the corporate stipulation. Increased Windows 8.1 adoption has been seen in conglomerates and it is also evident that the businesses are waiting for Windows 9 implementation in their desktop computers. Mustek also followed up how its sales in Huawei, fiber, and cable products boosted due to improved fiber-to-the-home (FTTH) demand.
The firm also indicated that the large-scale demand for FTTH is becoming an actuality. The carriers are slowly being stimulated by municipalities, suburbs, and confined communities at present. The preparation of FTTH services is now being eyed by mobile operators and technology corporations in order to enhance their profit trends.
There is a possibility of a new competition in terms of supplying confined communities and suburbs high-speed internet connectivity through broadband. The FTTH market is now intensively being targeted by Vodacom and MTN. Mustek even added that its development’s first phase has been finished. It became an all-around supplier of a wide array of computer hardware products, which is a switch from being a small IT allocator.
Mustek now touts its technology stack levels all filled with highly tested and great-performing products, which include CCTV surveillance tools, tablets, networking fiber systems, and computers among others.
Alexander Duys, the research analyst at Mvunonala Asset Managers, is delighted that the gross margin ratio of Mustek also improved. Duys added that the forex market is starting to act upon the firm.
The Mustek grid is growing and is projected to still perk up in the future. Just recently, the company disclosed its partnership with GMC of Zambia, Huawei International, and Bombardier Transportation for the Zambian railways technology improvement, which is worth R550m. The firm is set to provide R128m, which is inclusive of telecommunications and signaling tools of Huawei.
At present, Mustek is still the biggest provider and assembler of personal computers and related products in South Africa. The company’s revenue attributed to its operations increased by 9.5% (R1.9bn).
