Ramssol Group Berhad - Broadening PayDayNow’s Distribution Reach
Wed, 29-Jul-2026 07:22 am
by Research Team • Apex Research

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RAMSSOL (0236)

Target Price (RM)

1.30

Recommendation

Buy

  • Rams Fintech Sdn Bhd, an indirect wholly-owned subsidiary of RAMSSOL, has entered into a MOA with CTOS Data Systems Sdn Bhd, a wholly-owned subsidiary of Main Market-listed CTOS Digital Berhad, for a referral and distribution arrangement covering RAMS FINTECH's "PayDayNow" Earned Wage Access (EWA) programme. 

  • CTOS Data Systems will refer and promote the Platform to employers within its network, with RAMS FINTECH onboarding referred employers and paying commission in return.

  • As terms are still pending with no immediate earnings impact, we keep our FY26F-28F CNP (RM30.8m/RM40.0m/RM45.2m) and TP of RM1.30 unchanged. Maintain BUY.

 

The MOA. RAMS FINTECH, an indirect wholly-owned subsidiary of RAMSSOL, entered into the MOA with CTOS Data Systems on 28 July 2026 (Effective Date) for a referral and distribution arrangement covering the PayDayNow EWA programme. CTOS Data Systems will introduce, refer and promote the Platform to employers and clients within its network, while RAMS FINTECH onboards referred employers, operates the Platform, and pays commission to CTOS Data Systems, with both Parties bound by PDPA compliance. The MOA runs for two years from the Effective Date, extendable by mutual agreement, and may be terminated on 30 days' written notice (or immediately for material breach or insolvency); commission accrued to date remains payable, with transaction commission on existing referrals continuing only for the remainder of the applicable commission period.

 

About CTOS. CTOS Data Systems Sdn Bhd is a company incorporated in Malaysia and a wholly-owned subsidiary of CTOS Digital Berhad, which has been listed on the Main Market of Bursa Malaysia since 19 July 2021. Its principal business activities comprise the provision of credit reporting agency services and other digital software-related services. CTOS is Malaysia's leading Credit Reporting Agency, regulated under the Credit Reporting Agencies Act 2010, collecting credit and financial data to generate reports and scores used by banks, businesses and individuals to assess creditworthiness and manage financial risk.

 

A second distribution leg for PayDayNow. The CTOS tie-up gives PayDayNow a second distribution leg alongside the existing AmBank channel, this time through CTOS Data Systems' network of banks, businesses and employers built around its credit reporting franchise. The proposed data-collaboration exploration also points to a longer-term upside — CTOS's credit-bureau data could eventually strengthen EWA eligibility and risk assessment, subject to definitive agreements. Overall, the deal reinforces RAMSSOL's shift toward a more recurring, commission-linked revenue mix and slots naturally alongside its PeopleTech, A.I.Tech and AutoTech pillars.

 

Risks, approvals and effects. Key risk is typical of any commercial contract, namely the risk of breach or non-compliance by either Party, alongside execution risk given the MOA is a preliminary framework pending definitive commercial agreements. The MOA will not affect RAMSSOL's share capital or substantial shareholders' shareholdings, and is not expected to have any immediate material impact on the Group's net assets, earnings or gearing. It is not subject to shareholder or regulatory approval, and is not conditional upon any other corporate proposal. None of the Directors and/or major shareholders of RAMSSOL have any interest, direct or indirect, in the MOA.

 

Outlook. We expect RAMSSOL's growth narrative to broaden further as RAMS FINTECH scales PayDayNow onboarding across both the AmBank and CTOS Data Systems channels, alongside continued momentum in PeopleTech, A.I.Tech (Wofeng Partnership) and AutoTech, and progress on the INNIO/CariJob cross-sell.

 

Earnings Revision. As the MOA is non-binding and has no immediate impact on the Group's net assets, earnings or gearing, we leave our FY26F/FY27F/FY28F CNP forecasts of RM30.8m/RM40.0m/RM45.2m unchanged at this juncture.

 

Valuation. We maintain our BUY call with an unchanged TP of RM1.30, pegged to 15.42x FY27F core EPS of 8.4sen.

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