Ramssol Group Bhd - Linear Channel MOA Adds Software-Led Earnings Stream
Thu, 03-Sep-2026 07:21 am
by Research Team • Apex Research

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RAMSSOL (0236)

Target Price (RM)

1.37

Recommendation

Buy

  • RAMS AITech (100%-owned) signed an MOA with Linear Channel on 2 Sep 2026 formalising a device-as-a-service collaboration worth a combined RM23.24m over a 36-month term (2 Sep 2026 to 1 Sep 2029), spanning AI software resale, device leasing and device monitoring across a 10,000-seat committed base.

  • We view this positively as it deepens AiTech's recurring, contracted revenue base and gives RAMSSOL a channel in Linear Channel's SME device-as-a-service programme, with an explicit right-of-first-refusal framework to replicate the model across Singapore, Vietnam, Thailand, Indonesia and the Philippines.

  • Given the MoA and the three constituent agreements are legally binding, we raise our FY26F/FY27F/FY28F core net profit forecast to RM31.5m/RM42.2m/RM47.3m from RM30.8m/RM40.0m/RM45.2m.

  • We maintain BUY with a higher TP of RM 1.37 (previous TP: RM1.30), based on an unchanged PE multiple of 15.42x applied to a higher FY27F core EPS of 8.9sen (previously 8.4sen).

 

The deal. Under the MOA, Linear Channel's GreenElite Pro programme will deploy 10,000 subscription seats to SME customers, 8,000 of which it already owns; RAMS AITech supplies the remaining 2,000 under a rent-to-own Lease Agreement (RM4.6m), retaining title until paid. The Reseller Agreement (RM12.4m) and Monitoring Agreement (RM6.3m) cover AI software and device monitoring across all 10,000 seats. Combined, the three co-terminous agreements are worth RM23.2m over 36 months, with Linear Channel bearing all End Customer credit risk. Separately, we gathered that the pre-existing Foundation Collaboration Agreement of RM7.70m dated 26 Mar 2026 is an equipment leasing programme running Mar 2026 to Mar 2029, where 60% of it fulfilled to date, with recurring income to be recognised across FY26F-FY28F on a pro-rata basis as per management’s guidance. 

 

About Linear Channel. Linear Channel Sdn Bhd was incorporated in Malaysia on 26 July 1999 and is principally engaged in the supply, refurbishment and subscription-based rental of computers and IT equipment, including through its GreenElite Pro device-as-a-service programme. As at 9 January 2026, its issued share capital was RM9.63m comprising 9,633,128 ordinary shares, held 96.64% by Haas Asia Sdn Bhd and 3.36% by Maybank Trustees Berhad. Its directors are Chin Tong Lim and Tham Oi Kum (Kathleen Tham). Linear Channel is a private company; RAMS AITech's counterparty risk is therefore concentrated in a single, closely-held entity.

 

Outlook. We expect AiTech's recurring revenue base to keep building through 2HFY26, underpinned by (i) the Linear Channel MOA and Foundation Agreement ramping toward full run-rate by FY27F, (ii) the regional right-of-first-refusal framework offering optionality to replicate the model across Singapore, Vietnam, Thailand, Indonesia and the Philippines, and (iii) potential further device-as-a-service or software-licensing tie-ups as RAMS AITech's contracted revenue base continues to scale.

 

Earnings Revision. Given the MoA and the three constituent agreements are legally binding, we raise our FY26F/FY27F/FY28F core net profit forecast to RM31.5m/RM42.2m/RM47.3m from RM30.8m/RM40.0m/RM45.2m.

 

Valuation & Recommendation. We maintain BUY with a higher TP of RM 1.37 (previous TP: RM1.30), based on an unchanged PE multiple of 15.4x applied to a higher FY27F core EPS of 8.9sen (previously 8.4sen).

 

Risks. Non-performance, operational delay or breach of contractual obligations under the MOA.

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