Ramssol set to ride growing demand for management solutions

PETALING JAYA: Analysts are positive about Ramssol Group Bhd’s earnings prospects due to its exposure to the fast-growing demand for human capital management (HCM) across Asean.

The provider of management software solutions is also expected to be supported by its AI Tech and Auto Tech segments.

Last month the group launched Rider Gate, an online marketplace for second-hand motorbikes underpinned by its Auto Tech solution.

It is not expected to become a unicorn any time soon, but has the potential to.

Meanwhile, its AI Tech offering to bring artificial intelligence (AI) solutions to both the private and public sectors is expected to draw attention and open up new avenues for revenue generation.

Ramssol’s management said the platform/app has had a slow start since its soft launch last year, undertaking about two to three transactions a day.

The group recently posted its best quarterly earnings in the first quarter of this year (1Q25) on the back of stellar project execution in its core HCM business.

Hong Leong Investment Bank Research (HLIB Research ) said: “We are particularly positive on Ramssol’s key new segments – Pay Day Now and Rider Gate – that have the potential to drive the group’s earnings growth.”

The research house also projected Ramssol’s earnings to grow at a strong three-year compounded annual growth rate of 28.6% with a target price of RM1.21.

Meanwhile, Maybank Investment Bank Research (Maybank IB) has maintained a “buy”call on Ramssol with a higher target price of RM1.27.

“We raise our forecasts for the group from 2025 to 2027 by between 16% and 39% on expectations of stronger contributions from its AITech and PeopleTech offerings,” the research house added.

Maybank IB noted Ramssol is its top pick given its leading expertise in distributing world-class enterprise HCM solutions, growing AI-based data analytics platform and undemanding valuations.

The group’s order book remains elevated at RM61.7mil, which is sufficient to last over the next four quarters.

Similarly, its tender book pipeline also remains robust at about RM417mil, of which RM220mil is attributable to its PeopleTech solutions.

It added Ramssol’s valuations remained undemanding for a diversified software player spearheading the regional HCM market and AI-based data analytics.

Apex Research said, “Over the near term, we expect Ramssol’s human resource software solutions and its 51%-owned Thailand subsidiary, Geekstart, to continue to perform well.

“This is supported by a healthy order book and the successful expansion into the Thai market.

“However, beyond the core human resources solutions, we remain sceptical over the profitability and market share growth of other business segments such as Marketing Tech, Auto Tech and Edu Tech, given the intensely competitive landscape,” the research house added.

People Tech remained the group’s main revenue generator, accounting for 70.3% of total sales for the quarter, driven by higher demand for HCM consulting, payroll solutions and system upgrade projects.

Apex Research kept Ramssol’s core net profit forecasts for this year and next unchanged, while maintaining a “hold” on the stock with an unchanged target price of 78 sen.