RAMSSOL Delivers Broad-Based Growth, BUY Reiterated

RAMSSOL’s 2QFY26 earnings rose strongly, supported by AiTech, PeopleTech and AutoTech growth, while acquisitions and recurring revenues underpin a positive 2HFY26 outlook.

RAMSSOL Sustains Earnings Momentum

RAMSSOL Group Bhd delivered a solid set of 2QFY26 results, with earnings growth broadening across its key business verticals and supporting a positive outlook for the second half of the financial year.

The Group posted 2QFY26 core net profit of RM7.4 million, up 30.1% year-on-year (YoY) and 14.5% quarter-on-quarter (QoQ), in line with expectations. The result brought 1HFY26 core net profit to RM13.9 million, representing a 20.6% YoY increase and accounting for 45% of the research house’s FY26F forecast and 49% of consensus estimates.

Revenue increased 22.9% QoQ to RM27.3 million from RM22.2 million in 1QFY26, driven by accelerated client onboarding for enterprise AiTech solutions, expanded regional software licences and increased operating scale in AutoTech. On a YoY basis, revenue grew 9.4% from RM24.9 million.

Profitability also improved, with core net profit margin rising to 27.3% from 22.9% a year earlier. The stronger margin was supported by improved profitability across majority-owned subsidiaries, a higher-margin revenue mix and a significantly lower effective tax rate of about 2.6%, compared with approximately 24% in 2QFY25.

For 1HFY26, revenue rose 14.9% YoY to RM49.5 million, while core net profit increased to RM13.9 million. Stronger pre-tax profit contributions from Indonesia, Thailand and Malaysia, which grew 42.1%, 20.5% and 7.3% YoY respectively, helped drive the improvement.

Looking ahead, RAMSSOL is expected to maintain its earnings momentum in 2HFY26, supported by four key growth pillars. AiTech should benefit from accelerating enterprise AI and cloud adoption, while PeopleTech is expected to provide the most immediate contribution to scale, particularly following the completion of the INNIO Group acquisition.

AutoTech is also expected to continue scaling its motorcycle trading platform and JPJ collection agency operations. Meanwhile, the integration of PayDayNow’s earned wage access platform could provide additional growth opportunities for the Group’s FinTech segment.

The research house maintained its FY26F, FY27F and FY28F core net profit forecasts at RM30.8 million, RM40.0 million and RM45.2 million respectively.

The BUY recommendation was reiterated with an unchanged target price of RM1.30, based on 15.42 times FY27F core EPS of 8.4 sen. Key risks include rising minority interest dilution, integration risks from the INNIO Group and API acquisitions, and execution risks surrounding the PayDayNow EWA rollout.

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