KUALA LUMPUR (July 30): CGS International has upgraded Ramssol Group Bhd (KL:RAMSSOL) to “add” at 48 sen, with a higher target price of 95 sen (from 76 sen), on strong 1H2024 earnings beat and decent outlook across its multiple segments.

In a note on Monday (July 29), the research house raised Ramssol’s FY2024F-FY2026F (forecast) earnings per share (EPS) by 53%-58% on improving project pipeline for its human capital management (HCM) segment, contribution from the recently-acquired GeekStart, and better margins.

CGS said that for Ramssol’s HCM segment, the group extended its collaboration and distributorship with external partners, in a bid to broaden its market reach and project implementation capacity, given the growing demand for more effective HCM solutions.

“The group intends to leverage on this broadening network to cross-sell its training and marketing solutions, as part of its efforts to enhance operational efficiency,” it said.

“Key rerating catalysts are strong orderbook build for HCM and traction in RiderGate usage, while key downside risks are underdeliverance from GeekStart, rising competition in the HCM space, and emergence of a strong alternative to RiderGate,” CGS said.

At the time of writing on Tuesday, Ramssol dipped 0.68% or 0.5 sen to 72.5 sen, with 1.28 million shares traded.