Ramssol leans into AI

RAMSSOL Group Bhd, which uses technology to develop human capital management (HCM) solutions for companies, says it seeks to embed artificial intelligence (AI) capabilities into its solutions while working with technology partners on new AI-enabled offerings.

Group managing director and chief executive officer Datuk Wira Cllement Tan says the company sees AI becoming increasingly embedded across human resource, enterprise applications and business processes.

“Our focus is on turning these technologies into practical solutions that businesses can deploy and benefit from,” he tells StarBiz 7.

Tan says there is strong technology adoption momentum across South-East Asia.

“Companies are increasingly looking not just to digitalise, but to use technology and AI to fundamentally transform the way they operate.”

With Ramssol’s presence across five South-East Asian markets and partnerships with global technology leaders, Tan reckons the company is “well positioned” to capture these opportunities.

“Having a presence across five South-East Asian markets and multiple technology verticals gives us a broader customer base and helps reduce our reliance on any single market or business line.”

For the second quarter ended June 30 (2Q26), the company posted a net profit of RM7.4mil, compared with RM5.7mil in 2Q25.

This was on revenue of RM27.3mil, compared with RM24.9mil a year earlier.

Since 2022, Ramssol has grown its net profit from RM3.1mil to RM18.3mil in the financial year ended Dec 31, 2025 (FY25).

Tan says the company is “comfortable” with its current margin profile.

“Our priority now is not necessarily to keep pushing margins higher. Instead, we want to scale the business and capture more market opportunities.

“There is a significant runway for growth as more companies across South-East Asia invest in digital transformation and AI.”

As at June 30, the group’s order book stood at RM226mil, which is expected to be progressively recognised over the next three years, while its tender book was close to RM1bil.

“These provide a good base of contracted revenue and potential opportunities, and we are also seeing encouraging progress on several significant regional opportunities,” Tan says.

Even so, there are challenges to manoeuvre and one of the key challenges is keeping pace with the speed at which technology is changing.

“The adoption of AI, cloud and automation is creating significant opportunities, but it also means we need to continuously strengthen our capabilities.

“Another area we manage closely is project execution,” he explains.

“A portion of our business remains project and contract based, so the timing of implementation and achievement of project milestones can affect the timing of revenue recognition.”

Tan says the company addresses this through disciplined project management, close customer engagement and careful monitoring of delivery milestones.

“Over the last few years, we have been building Ramssol into much more than an HCM technology company.

“We started with a strong foundation in PeopleTech, but today we are building a broader technology ecosystem.”

The company recently launched PayDayNow, an earned wage access platform, with AmBank Group.

“The response has been very encouraging.

“Within just one month, we have seen strong interest and are already building a pipeline to on board hundreds of companies.”

Tan says as these new initiatives mature and revenue starts rolling in across the different businesses, there should be a “much more meaningful” acceleration in Ramssol’s growth.

“The outlook for AI and digitalisation across South-East Asia is very positive, but the opportunity is much bigger than simply saying that companies are adopting new technology,” he says.

“We are moving from digitalisation to what I would call intelligent transformation.

Companies are no longer just asking how they can put existing processes online.

“They are asking how AI, automation, cloud and data can fundamentally change the way they operate, improve productivity and make better decisions,” he adds.

JF Apex Securities Research says it expects the group’s earnings trajectory in the second half of its FY26 to remain intact, underpinned by its four main growth pillars.

It maintains its FY26, FY27 and FY28 core net profit forecasts of RM30.8mil, RM40mil and RM45.2mil, respectively, with no changes to its earnings assumptions.

The research house also reiterates its “buy” call with an unchanged target price of RM1.30, pegged to 15.42 times FY27 core earnings per share of 8.4 sen.

At last look, the stock was trading at 74 sen apiece, valuing the whole group at RM311mil.