Radiant shines bright as investors ride on the upturn

Radiant Globaltech Bhd looks poised to head for further upside following a recent breakout from a reversal trend.

The integrated technology solutions provider may trend to its resistance targets of 41 sen and 49 sen.

The counter may have declined 4% in the past year to close at 36 sen on April 26.

However, in the 5 days, it has climbed some 11%.

The stock is trading at a price to book value multiple of 2.6 times, based on its book value per share of 14 sen as of end-Dec 2023.

Radiant Globaltech hit a 52-week low of 28 sen in February but managed to surge close to its year-high of 40 sen.

This small cap counter is seen as a beneficiary to rising adoption of digitalisation and automation solutions from customers in the retail and industrial sectors.

Basically, Radiant Globaltech provides hardware and maintenance services to the retail industry and develops its own software while design, development, and implement third-party software as well.

Financial performance of Radiant Globaltech has been impressive.

its net profit jumped 44% year-on-year to RM3.3 million in 4QFY23, lifting marginally its FY Dec 2023 bottomline to RM7.6 million.

Its revenue of RM37.9 million for the current quarter under review was 20.0% higher than the RM31.6 million recorded in the previous quarter due to deployment of projects in business segments.

The Group recorded profit before taxation of RM4.8 million in the current quarter as compared to RM1.6 million in the previous quarter.

The increase mainly due to more revenue generated in the business segments and decreased in impairment of trade receivables

Moving forward, the company is in the midst of expanding it’s customer base to various other industries, leveraging on it’s strong track record with prominent retailers and industrial companies.

It plans to integrate it’s hardware and software solutions for both industrial and retail markets into more robust and customizable offerings that will fulfil it’s customers’ digital needs.

The Group will focus it’s efforts on securing and implementing business enhancement solutions for it’s existing customers in the region, as well as capturing new market share.

This is backed by it’s healthy balance sheet and robustness of it’s various solutions, enabling it to capitalise on software, maintenance and support services segments to create a long-term sustainable revenue stream.

Investors interest will likely continue given the anticipated strong demand for retail and industrial automation solutions, providing ample opportunities for Radiant Globaltech to grow.