Malacca Securities forecasts Ramssol Group’s revenue to grow at a 2-year CAGR of 57.3% for FY22-FY24f
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00:00 This morning, we're taking a look at Ramsol Group, which provides human capital management
00:06 services under its PeopleTech, EduTech, AutoTech and Marketing Tech segments.
00:11 Malacca Securities says Ramsol is fairly valued at 45.5 cent, though it did not rate the stock.
00:18 Ramsol last closed at 43 cent.
00:21 In a nutshell, Malacca Securities forecast the company's revenue to grow at a two-year
00:25 CAGR of 57.3% for FY22-24.
00:30 It expects Kopup.me to expand by 75.9% to RM6.6 million in FY23 and 40.6% to RM9.3 million
00:39 in FY24.
00:41 Growth is supported by the Ramsol Gozar's JV, plus the renewal and maintenance of ongoing
00:47 projects.
00:48 It's also expected to see increasing demand for its Excel programs and Engo platform,
00:53 with a rising demand in corporate compliance efforts.
00:56 The research house explains it arrived at a fair value of 45.5 cent, ascribing a P/E
01:02 multiple of 15 times towards an FY24 core EPS of 3.04 cent.
01:08 Over the long run, it does not rule out the possibility of Ramsol trading closer to its
01:13 two-year average of P/E of 37.8 times should all the previously mentioned catalysts be
01:19 executed well in the next two years.
01:22 So what's the consensus?
01:23 According to Bloomberg data, two other research firms cover Ramsol.
01:27 That's CGS CIMB with a hold recommendation and target price of 40 cent, MA Bank IB with
01:34 a buy rating and target price of 46 cent.
01:37 On average, we're looking at a target price of almost 44 cent.
01:41 That's some 2% higher than Ramsol's last close of 43 cent.
01:45 [Music]