Ramssol Group Bhd (Ramssol) is projected to grow in their top and bottom, underpinned by their ongoing developments, such as Ramssol-GoSaas joint venture and increasing demand for its EXCEL programs & EnGo platform.
In its Stock Digest note, Malacca Securities Sdn Bhd (M+ Online) said that it forecasts the core PATMI to grow at 40.6 to 75.9%, which between RM6.6 and 9.3 million for FY23-24F.
“This is underpinned by Ramssol-GoSaas JV, to secure new projects with the Oracle ERP and SCM systems, ongoing projects to be maintained and renewed as well its increasing demand for its EXCEL programs & EnGo platform with the rising demand in corporate compliance efforts,” it said.
Ramssol, it added, entered into a collaboration agreement on Oct 11, with GoSaas Inc to provide Oracle Fusion Cloud Solutions mainly in
the areas of Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and Human Capital Management (HCM) to clients in Malaysia and SEA.
“Ramssol will market and promote the products in the region and appoint GoSaas for the implementation of the products following a successful sale. This move helps Ramssol to bridge the expertise barrier in providing ERP & SCM systems solutions by tapping into the technical experience of GoSaas.”
The research house arrives at a fair value of RM0.455, indicating an upside potential of near to 11.1%, by ascribing the FY24f core EPS of 3.04 sen towards 15 times P/E.
It noted that Ramssol mainly provides human capital management services under its PeopleTech business segment, and has recently expanded with new PeopleTech products, as well as new segments namely, EduTech, MarketingTech and AutoTech.
The assigned P/E, it added, is at a discount to the average Bursa Professional Services industry P/E of 48.3 times given its smaller market cap positioning of Ramssol.
“Ramssol is still below its 2-year average P/E of 37.8 times Over the long run, we do not rule out that Ramssol may trade nearer towards its 2-year average of P/E of 37.8x, should all the above-mentioned catalysts be executed well in the next 2 years,” it added.
