Rider Gate JPJ agreement to enhance Ramssol Group bottom line


PETALING JAYA: Ramssol Group Bhd is in a good position to deepen its foothold in Malaysia’s digital motor-vehicle services landscape, with expectations that its newly enhanced platform will begin contributing meaningfully from 2026.

The technology solutions provider has strengthened its presence in the second-hand motorcycle market after securing a government-linked appointment that analysts view as strategically significant.

According to Maybank Investment Bank Research (Maybank IB), Ramssol’s prospects hinge partly on developments arising from a recent mandate awarded to the company’s wholly-owned unit, Rider Gate Sdn Bhd.

The research house said the company’s outlook has improved following the Dec 5 appointment by the Road Transport Department (JPJ), which allows the subsidiary to act as a collection agent for digital motor-vehicle services over a two-year period.

Maybank IB noted: “We view this appointment favourably, as it strengthens Ramssol’s Rider Gate platform, its online marketplace for second-hand motorcycles’ transactions.”

The research house highlighted that three services will be offered in its role as a JPJ collection agent – ownership transfer registrations, licence renewals and electronic summons payments – which align with ongoing efforts to streamline transactions in the market.

“The three services to be offered in its role as a collection agent for JPJ are highly complementary and is likely to reduce potential friction points typically associated with second-hand motorcycle transactions,” it noted.

The agreement, which was expected to be formalised by the first quarter of 2026, would commence once JPJ services went live on the Rider Gate platform.

The contract value will depend on the number of transactions performed during the tenure.

Maybank IB highlighted the forward contribution potential, stating that: “We expect the Rider Gate platform to start delivering meaningful contributions in 2026, accounting for 5% to 10% of our 2026 revenue forecast.”

Despite the operational boost, the research house made no adjustments to its financial projections.

“We make no changes to our 2025-2027 earnings forecasts, having already accounted for contributions from Rider Gate in our projections,” it said.

Reiterating its “buy” call on Ramssol, Maybank IB kept its target price for the counter at RM1.35 a share, based on an unchanged 17 times forward earnings, consistent with its historical mean.

“Key potential catalysts include the securing of tax incentives and a faster scale-up of the AutoTech and artificial intelligence cloud segments,” the research house noted.

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