Ramssol Group Berhad - Broad-Based Growth Across All Verticals
Mon, 10-Aug-2026 06:59 am
by Research Team • Apex Research

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RAMSSOL (0236)

Target Price (RM)

1.30

Recommendation

Buy

  • RAMSSOL posted 2QFY26 core net profit of RM7.4m (+30.1% YoY, +14.5% QoQ), in line with expectations, accounting for 45% of our FY26F and 49% of consensus forecasts, driven by broad-based growth across all verticals and lower tax rate.  

  • We remain bullish on RAMSSOL's earnings trajectory into 2HFY26, underpinned by sustained AiTech and PeopleTech CaaS momentum in Indonesia and Malaysia, a scaling AutoTech motorcycle-trading platform, and the incoming PeopleTech contribution from the newly-completed INNIO Group and API acquisitions.

  • Maintain our FY26F/FY27F/FY28F core net profit forecasts of RM30.8m/RM40.0m/RM45.2m

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

 

Results Inline. The Group’s 2QFY26 core net profit of RM7.4m (+30.1% YoY, +14.5% QoQ), was arrived at adjusting excluding forex loss (RM0.012m). This lifted 1HFY26 core net profit to RM13.9m (+20.6% YoY), in line with our expectations, accounted for 45% of our FY26F forecast and 49% of consensus estimates. Growth was driven by strong expansion in AiTech deployments in Indonesia, PeopleTech CaaS subscriptions and AutoTech motorcycle transactions, alongside a lower effective tax rate.

 

QoQ. Revenue expanded 22.9% QoQ to RM27.3m (1QFY26: RM22.2m), driven by accelerated client onboarding in enterprise AiTech, expansion of regional software licences and operational scale in AutoTech, lifting core net profit by 14.5% QoQ to RM7.4m (1QFY26: RM6.5m).

 

YoY. Group revenue rose 9.4% YoY to RM27.3m (2QFY25: RM24.9m), while core net profit grew a faster 30.1% YoY to RM7.4m on stronger profitability in majority-owned subsidiaries and a lower effective tax rate of c.2.6% (2QFY25: c.24%), lifting core net profit margin to 27.3% (2QFY25: 22.9%).

 

YTD. 1HFY26 revenue rose 14.9% YoY to RM49.5m (1HFY25: RM43.0m) and the Group’s core net profit expanded by 20.6% YoY to RM13.9m (1HFY25: RM11.6m), attributable to stronger pre-tax profit contributions from Indonesia (+42.1% YoY), Thailand (+20.5% YoY) and Malaysia (+7.3% YoY). The stronger earnings growth was further supported by a higher-margin revenue mix (particularly AiTech and recurring PeopleTech CaaS), operating leverage and a lower effective tax rate.

 

Outlook. We expect the Group's earnings trajectory in 2HFY26 to remain intact, underpinned by its four main growth pillars: (i) AiTech, on accelerating enterprise AI and cloud adoption supporting an improved margin mix; (ii) PeopleTech, expected to deliver the most immediate contribution to scale, strengthened by the INNIO Group acquisition; (iii) AutoTech, continuing to scale its motorcycle trading platform and JPJ collection agency operations; and (iv) FinTech, via the PayDayNow EWA integration.

 

Earnings Revision. We maintain our FY26F/FY27F/FY28F core net profit forecasts of RM30.8m/RM40.0m/RM45.2m, with no changes to our earnings assumptions.

 

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

 

Risks. Rising NCI share diluting core net profit growth, Integration risk from the newly completed INNIO/API acquisitions, Execution risk on PayDayNow EWA rollout 

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