Automated Systems Holdings, the leading information-technology services provider to the Hong Kong government, plans to accelerate expansion on the mainland and across Southeast Asia after recording virtually flat sales in its last fiscal year. 'We are working closely with Beijing Teamsun Technology, the group's controlling shareholder, to capture more business opportunities throughout the mainland,' Automated chief executive Lai Yam-ting said yesterday. Lai said potential mergers and acquisitions were being considered for growth in Southeast Asia, where Automated already had operations in Thailand. The company posted a HK$115.8 million net profit in the year to March, up 171.4 per cent from HK$42.7 million a year earlier, boosted by a one-off gain from the disposal of its global managed services business in August last year. Revenue fell 2.3 per cent to HK$1.33 billion, due to a slowdown in information-technology hardware and services sales. Lai, however, noted that the improving economy helped the company grow in the January-March period, when it generated HK$28.8 million in profit before taxation that was higher than those of the previous three quarters combined. He said Automated would focus more on growing its technology solutions business - which includes professional, maintenance and outsourcing services - as it further develops operations on the mainland and across Southeast Asia. About 61.2 per cent of the firm's revenue for the year to March still came from its traditional infrastructure business, which is based on sales of hardware such as computer servers and storage systems. Market research firm International Data Corp forecast the mainland information-technology services market this year to reach 82 billion yuan from 73.09 billion yuan last year. Lai said Teamsun, which bought the 68.4 per cent holding of US-based consulting and outsourcing specialist Computer Sciences Corp for HK$262.4 million in September, provides Automated with strategic support on the mainland through its 30 branches nationwide. He said prospects in the Pearl River Delta were being enhanced by government policies, such as the framework agreement on Hong Kong-Guangdong co-operation, which supports setting up cross-border subsidiaries for financial institutions from the two markets.
