Ramssol Group Bhd delivered its strongest quarterly performance on record, registering core net profit1 of RM4.4 million2 in the third quarter of 2024 which is an over 200% growth year-on-year (YoY), as the group's outlook into 2025 and 2026 remains robust, according to Maybank Investment Bank (Maybank IB).
The third quarter revenue of RM19.6 million3 represented a growth of 220% YoY, compared to RM6.14 million recorded in the corresponding quarter in 2023.
This is Ramssol's third consecutive quarterly earnings that showed outstanding performance surpassing market expectation driven by robust domestic momentum in the PeopleTech segment.
Meanwhile, the year-to-date (YTD up to September) core net profit grew over 123% YoY compared to the corresponding YTD core earnings of 2023.
Nevertheless, the extraordinary YTD core net profit of RM12.9 million5, which is around 80% of the RM16 million projected by analysts and consensus, is considered "within expectation" instead of a case of exceeding expectation as the last quarter of 2024 will likely be impaired by seasonal factors.
The positive outlook ahead, in 2025 and 2026, is evident from Maybank IB's revenue projection that comes in at RM67 million for 2025 and RM74 million for 2026. The core net profit forecast figures for 2025 and 2026 are RM19 million and RM22 million, respectively.
Analysts have maintained their BUY call for Ramssol and the target price of RM1.00, citing the company's expertise in distributing world-standard Human Capital Management (HCM) systems from the likes of Oracle.
Ace market-listed Ramssol traded at RM0.730 as at 3:05pm Nov 12, up two sen from its previous closing of RM0.71.
On 7 Nov 2024, Ramssol announced that its 51% owned subsidiary, Bangkok-based Geekstart Co Ltd, had entered into an agreement with MDS Compant Ltd of Thailand for deployment of an AI-integrated healthcare system at the latter's hospital. Under the agreement, MDS
will pay GeekStart THB275 million (about RM35 million) over 10 installments throughout the duration of the project, which is set to be completed by Jun 2026. Analysts expect the project to contribute potential earnings in 2025 and 2026.
- Core net profit: Stated as Profit/(loss) attributable to ordinary equity holders of the parent in the financial report filed with Bursa. ︎
- RM4,358,000 ︎
- RM19,645,000 ︎
- RM6,117,000 ︎
- RM12,886,000 ︎
