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.
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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.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.449296 4.484012
EUR 4.692599 4.701308
CNY 0.615732 0.616932
HKD 0.571606 0.576092
SGD 3.310067 3.336427