M+ Global has assigned RedPlanet Bhd a fair value of 25 sen per share, implying a 31.6% upside from its initial public offering price of 19 sen, as the enterprise ICT specialist prepares for its ACE Market listing on Oct 22.
In an unrated IPO note, the research house said RedPlanet’s growth prospects are supported by its geospatial solutions business, proprietary intelligent rail technology and expansion into Central Transmission Systems, alongside planned AI-driven products.
M+ Global projects RedPlanet’s core net profit to grow at a three-year compound annual growth rate of 10.7%, reaching RM6.4 million, RM7.3 million and RM8.6 million over the next three years.
The research house derived its 25 sen fair value using a 15 times price-to-earnings multiple based on mid-FY28 forecast earnings per share of 1.67 sen.
The valuation multiple is below those of larger listed technology and digital infrastructure peers, reflecting RedPlanet’s smaller market capitalisation of about RM78 million.
RedPlanet owns the proprietary Platform Intrusion Safety System, or PIES, which detects human intrusion on railway platforms and sends signals to prevent trains from entering affected stations.
The system has been deployed at more than 88 stations in Malaysia, including on the Kelana Jaya LRT Line, Ampang Line and LRT3 Shah Alam Line.
M+ Global said exclusive patents held across Malaysia, Australia, Indonesia, Singapore, the Philippines and Thailand provide a significant barrier to entry in the intelligent rail segment.
RedPlanet has also expanded into Central Transmission Systems, which form the communications backbone linking rail subsystems with operations control centres.
In 2026, the group secured two CTS contracts worth a combined RM32.5 million, comprising RM21.6 million for the Ampang LRT Line and RM10.9 million for upgrading the Kelana Jaya LRT Line.
The group also has a sizeable tender pipeline.
As at the latest practicable date, RedPlanet had submitted 11 tenders worth approximately RM132.1 million, comprising 10 geospatial tenders valued at RM101.6 million and one intelligent rail tender worth RM30.5 million.
Its geospatial business is anchored by a long-standing relationship with a major Malaysian electricity utility, which it has served since 2016 across data collection, processing, digitalisation and network asset migration.
M+ Global said the group is also targeting overseas utility-sector geospatial contracts, including opportunities in Saudi Arabia and India.
RedPlanet is developing an AI Asset Detection Tool for automated geospatial data processing and an Automated Open Track AI Detection and Early Warning System for railway obstacle detection using drones, with commercialisation targeted by the end of 2026.
Applications for RedPlanet’s IPO opened on Sept 28 and will close on Oct 8, with the company scheduled to list on Bursa Malaysia’s ACE Market on Oct 22.
