PETALING JAYA: Apex Securities Research has projected Ramssol Group Bhd
’s financial year 2025 (FY25), FY26 and FY27 core earnings to grow by 65%, 46% and 12% to RM22mil, RM32mil and RM36mil respectively, implying a compounded annual growth rate of 39% over its forecast period.
The research house attributed higher earnings to the technology solutions provider’s various platforms.
It said the stellar earnings growth would be mainly driven by its steady sales in PeopleTech, supported by sustained traction for Human Capital Management solutions and new initiatives such as Pay Day.
Also, A.I Tech’s contribution is rising as more enterprises deploy artificial intelligence analytics to enhance productivity and operational efficiency.
Apart from this, the growth will also be enhanced by the increasing contribution from AutoTech as Rider Gate scales its user and dealer base, aided by its integration with the (Road Transport Department’s) MySikap platform.
The group is also undertaking a special issue of up to 12.5% of its enlarged share base to bumiputra investors identified and/or approved by the Investment, Trade and Industry Ministry.
Based on the current outstanding share base of 389.4 million, this translates into about 48.7 million new shares, implying an estimated 13% earnings per share dilution for FY26 to FY27.
The gross proceeds of up to about RM46mil (under the maximum scenario) would be utilised for working capital and repayment of bank borrowings.
According to the research house, the exercise is intended to facilitate Ramssol’s migration to the Main Market of Bursa Malaysia.
Supported by a strong balance sheet and a net cash position of RM18.4mil as of Sept 30, 2025, the additional funds should enhance the group’s financial flexibility for business expansion, potential share buybacks and dividends to support shareholder returns.
Apex Securities is reinstating its coverage on Ramssol with a “buy” rating and a target price of RM1.45 per share.
