PETALING JAYA: Apex Securities Research remains bullish on Ramssol Group Bhd
, maintaining its “buy” recommendation and raising its target price to RM1.37 from RM1.30, following the group’s latest device-as-a-service collaboration with Linear Channel Sdn Bhd.
The research house said the agreement should strengthen Ramssol’s recurring and contracted revenue base while opening a potential regional avenue for the group to replicate its business model.
RAMS AITech, a wholly owned subsidiary of Ramssol, signed a memorandum of agreement with Linear Channel on Sept 2 for a device-as-a-service collaboration worth RM23.24mil over 36 months, covering artificial intelligence software resale, device leasing and device monitoring.
The agreement involves a committed base of 10,000 seats under Linear Channel’s GreenElite Pro programme for small and medium enterprise (SME) customers.
RAMS AITech will supply 2,000 devices under a RM4.6mil rent-to-own lease agreement, while reseller and monitoring agreements are valued at RM12.4mil and RM6.3mil respectively.
Apex Research said the three agreements are legally binding and co-terminous, with Linear Channel bearing the end-customer credit risk.
It views the development positively as it deepens AiTech’s recurring, contracted revenue base and gives Ramssol access to Linear Channel’s SME device-as-a-service programme.
More importantly, the deal comes with a right-of-first-refusal framework that could allow the model to be replicated in Singapore, Vietnam, Thailand, Indonesia and the Philippines.
Apex Research expects AiTech’s recurring revenue base to continue building through the second half of financial year 2026, supported by the Linear Channel memorandum and an earlier RM7.7mil Foundation Collaboration Agreement.
The latter, an equipment leasing programme running from March 2026 to March 2029, was about 60% fulfilled as of the report date.
The research house raised its financial year 2026 (FY26), FY27 and FY28 core net profit forecasts to RM31.5mil, RM42.2mil and RM47.3mil respectively, from RM30.8mil, RM40mil and RM45.2mil previously.
Apex Research’s revised RM1.37 target price is based on an unchanged 15.4 times price-to-earnings multiple applied to a higher FY27 core earnings per share estimate of 8.9 sen.
Its projections point to revenue rising from RM77.6mil in FY25 to RM121.4mil in FY26 and RM176.5mil in FY27, while core net profit is expected to rise to RM42.2mil in FY27.
The group is also projected to remain in a net cash position throughout FY26 to FY28.
However, Apex Research flagged non-performance, operational delays or breaches of contractual obligations under the memorandum as key risks.
