RAMSSOL delivered another strong quarterly performance as HCM project delivery momentum continued to snowball on the back of strong sales from leading enterprise HCM solution brands like Oracle, Darwinbox and ZingHR. Pending briefing updates Maybank IB said it maintains earnings forecasts for FY24-26E. TP of MYR1.00 (pegged to 17x FY25E PER, at its LT mean) and BUY rating is also maintained.

Results above expectations
RAMSSOL registered 2Q24 core net profit of MYR4.4m (+108% YoY, +4% QoQ). Cumulative 6MFY24 core net profit of MYR8.5m (+104% YoY) was above expectations, at 53%/56% of both ours/street's FY24E forecasts. Underpinned by robust domestic momentum in its HCM-centric PeopleTech segment, this was RAMSSOL's second consecutive quarterly earnings
outperformance. Year-to-date, RAMSSOL's 1H24 core net profit has already exceeded FY23's full-year core earnings by c.32%.

Robust HCM solutions growth in Malaysia
2Q24 group turnover grew 71% YoY/20% QoQ, on the back of strong HCM segmental delivery. Growth in Malaysia (+103% YoY) was driven primarily by new product offerings, collaboration with partners for license distribution, and recurring software subscriptions. Limited milestone execution for foreign clients in Singapore (-66% YoY), coupled with robust
domestic growth from its high-profit margin HCM license distributorship business also helped boost the group's EBITDA margins (+11.6% YoY).

GeekStart acquisition nearing completion
RAMSSOL's AutoTech and MarketingTech segments are expected to buttress PeopleTech contributions in 2H24 as the group has positioned itself to roll out a slew of novel initiatives in the coming months. Meanwhile, the house said it also gathers that the acquisition of 51.0% equity interest in TH-based software development company, GeekStart Company Ltd for MYR6.93m is nearing completion by the end of July 2024. To recap, the acquisition comes with a profit guarantee of MYR4.7m/7.1m for FY24E/25E respectively an