PETALING JAYA: RGB International Bhd
is expecting stronger delivery momentum in the second half of financial year 2026 (2H26), supported by a healthy order book and continued demand for electronic gaming machines (EGMs) across Asia.
In a report, Phillip Capital Research said the company’s management expects EGM deliveries to increase to between 1,700 and 2,000 units in 2H26, from 1,300 units in 1H26, putting the group on track to meet its target of 3,000 units for the full year, compared with 2,300 units delivered in 2025.
RGB International is involved in the electronic gaming machine and equipment industry.
According to the research house, the stronger outlook is underpinned by an order book of about 2,000 units as at June 2026, which is split evenly between new integrated resort and expansion projects in the Philippines, as well as replacement demand across Asia.
Furthermore, it said most of the deliveries are scheduled for the third quarter of financial year 2026 (3Q26) and 4Q26, providing greater earnings visibility for the group in 2H26.
Separately, RGB is tendering for EGM upgrade programmes in Macau as gaming operators upgrade their machines to meet new technical standards.
“Any new project wins could provide upside to our 2026 to 2027 estimated earnings forecasts,” the research house said.
“We maintain our Buy rating and 12-month target price of RM0.40, based on a nine times price-to-earnings ratio (PER) applied to the estimated 2027 earnings per share,” the research house said.
Phillip Capital said it viewed the stock’s current valuation as attractive at five times 2027 PER, supported by improving EGM delivery prospects.
RGB’s net cash position of RM141mil as at 2Q26, equivalent to about 45% of its market capitalisation, also provides balance sheet flexibility.
