PETALING JAYA: RedPlanet Bhd, which is en route to a listing on the ACE Market, is positioning itself for major rail projects.
In a report, TA Research said the company plans to tender for a larger volume of projects with bigger contract values to build its order book.
RedPlanet is an enterprise information and communications technology (ICT) solutions provider specialising in geospatial and intelligent rail solutions, as well as the trading of ICT solutions and hardware.
Its geospatial business provides data collection, analytics and mapping for planning, tracking and asset management, while its rail business is anchored by systems that enhance safety and security at rail facilities.
The research house said that within the geospatial business, the company aims to grow by leveraging its position as an authorised reseller of Supplier A Group’s products and its ongoing research and development in artificial intelligence-enabled data processing.
Meanwhile, in the rail business, it intends to bid for the Penang light rail transit or LRT Mutiara Line and Johor’s Autonomous Rapid Transit system as its PIES System is one of a few platform safety options available to rail operators.
According to the research firm, the company’s capacity to take on projects depends largely on working capital, as performance bonds typically require 5% to 10% of contract value.
The initial public offering (IPO) is priced at 19 sen per share and comprises 70 million new ordinary shares and an offer for sale of 10 million existing shares by way of private placement to selected investors.
The company aims to raise RM13.3mil through the IPO ahead of its listing transfer to the ACE Market from the LEAP Market of Bursa Malaysia, slated on Oct 22.
“At the IPO price of RM0.19 per share, RedPlanet is valued at 11.4 times financial year 2026 core earnings per share (EPS).
“Correspondingly, we value RedPlanet at 14 times calendar year 2027 core EPS, arriving at a fair value of RM0.23 per share,” TA Research said.
It said it had benchmarked the stock against peers like Insights Analytics Bhd
, KJTS Group Bhd and ITMax System Bhd, which is also involved in technology-driven solutions for infrastructure and public sector clients.
TA Research said its target price earnings multiple reflected a 30% discount to the industry peer average to account for the stock’s relatively smaller market capitalisation.
The valuation is further supported by its RM51.7mil order book as at Aug 29, 2026.
The order book is expected to be recognised progressively over the next three financial years.
Support also comes from 11 pending tenders worth RM132.1mil across its geospatial and intelligent rail solutions businesses.
The company also has plans to tender for larger-scale geospatial and intelligent rail projects.
