Ramssol Group Bhd - Finishing Inline
Mon, 02-Mar-2026 07:56 am
by Brian Chin Haoyan • Apex Research

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RAMSSOL (0236)

Target Price (RM)

1.25

Recommendation

Buy

  • Ramssol posted 4QFY25 core net profit of RM4.0m (-47% QoQ, 5.4x YoY), bringing FY25’s sum to RM23.0m (+70%). We deem the results within our (104%) but above consensus (123%) expectations. 

  • Core earnings for 4QFY25/FY25 surged 5.4x/+70%, bolstered by: (i) robust organic growth in PeopleTech, driven by accelerating demand for HRMS solutions such as Oracle, Darwinbox, and HONO; and (ii) a full-year contribution from A.I.Tech following its 51% acquisition in June 2024, alongside a demand uptick in enterprise AI software services.

  • We trimmed our FY26/FY27F forecasts by 11% and 10%, respectively to account for more conservative estimates in the PeopleTech and A.I.Tech divisions, following some delays in revenue recognition for new project initiatives. 

  • Post-earnings adjustments and accounting for higher share base from its recent placement exercise, we maintain BUY rating but with a lower TP of RM1.25 (from RM1.45) derived from applying 20x partially diluted FY26F EPS.

Results inline. Ramssol posted 4QFY25 core net profit of RM4.0m (-47% QoQ, 5.4x YoY), bringing FY25’s sum to RM23.0m (+70%). We deem the results within our (104%) but above consensus (123%) expectations. 4QFY25 results were arrived after excluding impairment on intangible assets (RM3.6m).

 

QoQ. Core net profit plummeted 47% impacted by a seasonally lower top line. The decline stems from lower productivity in the PeopleTech and A.I.Tech units due to year-end leave and lower staffing availability, alongside the booking of bonus payout during the quarter.

 

YoY/YTD. Core earnings surged (5.4x YoY / +70% YTD), bolstered by: (i) robust organic growth in PeopleTech, driven by accelerating demand for HRMS solutions such as Oracle, Darwinbox, and HONO; and (ii) a full-year contribution from A.I.Tech following its 51% acquisition in June 2024, alongside a demand uptick in enterprise AI software services.

 

Outlook. Ramssol’s outlook is underpinned by a multitude of growth drivers across its key business pillars. Recall that Ramssol inked a strategic collaboration with AmBank to offer earned wage access (EWA) to Ambank’s employees via “Pay Day Now” platform, management updated that the MOU period with Ambank is completed and slated for conversion into MOA by end-May. Additionally, its appointment as Southeast Asia’s distributor for Tencent Cloud adds a revenue vertical to PeopleTech and A.I.Tech via a more comprehensive suite of software and AI solutions available for customers. For AutoTech, Rider Gate’s integration with the RTD’s MySikap platform (enabling seamless ownership transfers) is expected to drive transaction volumes and market share gain in the used motorcycle market. All in, these initiatives enhance earnings visibility and solidify the group’s multi-year growth trajectory. The group’s orderbook stood at RM170.9m as at end-FY25 (vs RM148.4m as at end-3QFY25).

 

Earnings Revision. Despite FY25 results closing in line, we have trimmed our FY26/FY27F forecasts by 11%/10% to account for more conservative estimates in the PeopleTech and A.I.Tech divisions, following some delays in revenue recognition for new project initiatives.

 

Valuation. Post-earnings adjustments and accounting for higher share base arising from its recent placement exercise, we maintain BUY rating but with a lower TP of RM1.25 (from RM1.45) derived from applying 20x partially diluted FY26F EPS of 6.3 sen.

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