Ramssol Group Berhad - Synergistic Acquisition
Wed, 26-Jun-2024 08:23 am
by Kenneth Leong • Apex Research

Counter

RAMSSOL (0236)

Target Price (RM)

0.76

Recommendation

Buy

  • Acquiring 51.0% stake in GeekStart Company Limited as part of the Group’s strategy to expand their presence in the Southeast Asia market.
  • Price tag translates to a historical P/E multiple of 10.0x, which we deem is a decent bargain that comes with a profit guarantee of RM2.4m and RM3.6m for FY24F and FY25F respectively.
  • Re-iterate BUY recommendation with a higher target price of RM0.76, by pegging 18.0x P/E multiple to revised fully diluted FY25F EPS of 4.2 sen.
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186344 4.224837
EUR 4.692802 4.707788
CNY 0.594564 0.595974
HKD 0.537155 0.542118
SGD 3.243708 3.273864