PETALING JAYA: A strong pick-up in business activities is on the cards for Ramssol Bhd’s human capital management (HCM), training and marketing segments which could lead to higher revenue.
Following a resilient first-half (1H24) financial results performance, CGS International (CGSI) Research raised its earnings per share forecast on the group for the financial year 2024 (FY24) to FY26 by 53% to 58%.
The research unit incorporated a higher revenue contribution from Ramssol’s HCM segment while bumping up its growth assumptions slightly for the marketing and training segments.
It also models a revenue contribution of RM10mil to RM13mil from Thailand-based GeekStart for FY24 to FY26 as it has secured projects to roll out digitalisation solutions for several key customers.
Additionally, heading into FY25, CGSI Research is expecting a maiden contribution from RiderGate once the utility platform goes live.
Overall, the research house projects a strong three-year earnings per share compounded annual growth rate of 49.8% for Ramssol.
It has upgraded its call on the company from a “hold” to an “add” with a higher target price of 95 sen a share on the back of its solid order-book outlook, earnings accretive acquisitions, improving earnings track record and reasonable valuations.
