Malacca Securities Research has put a fair value of RM0.25 on RedPlanet Berhad, implying a 31.6% upside from the RM0.19 IPO price. The research house projects a three-year earnings compound annual growth rate of 10.7%, with core PATMI rising to between RM6.4 million and RM8.6 million.
What RedPlanet Does
According to Malacca Securities Research, RedPlanet is an enterprise ICT group with three main activities: geospatial solution design and implementation, intelligent rail solutions, and trading of ICT solutions and ancillary hardware. Its customers span the public sector, utilities, rail transport, energy and engineering, in Malaysia and selected overseas markets.
The research house identifies the proprietary PIES® Platform Intrusion Safety System as the core of the rail business. PIES® detects people entering railway platforms and signals the train system to halt trains from entering the station. The system has been deployed at more than 88 stations across the Kelana Jaya, Ampang and LRT3 Shah Alam lines, and ATSB Group holds its exclusive patents in six markets, including Malaysia, Singapore and Thailand.
Key Financial Numbers and Growth Drivers
Malacca Securities Research attributes the growth outlook to three drivers: larger geospatial and rail tenders, expansion into Central Transmission Systems (CTS), and upcoming AI-driven solutions. The CTS is the backbone communication network linking railway subsystems to operations control centres.
In 2026, RedPlanet secured two CTS contracts worth a combined RM32.5 million. These comprise a RM21.6 million deployment at the Ampang LRT Line and a RM10.9 million upgrade of the existing Kelana Jaya LRT Line CTS.
The geospatial segment rests on a utility relationship with Customer A, a major Malaysian electricity utility, dating back to 2016. The research house notes that deep integration of Supplier A Group software into Customer A’s infrastructure raises switching costs, which supports revenue stickiness.
As at the latest practicable date, the group had submitted 11 tenders worth about RM132.1 million. Of this, 10 geospatial tenders account for RM101.6 million and one intelligent rail tender for RM30.5 million.
The Valuation Basis
The fair value of RM0.25 is derived from a price-to-earnings multiple of 15.0x, applied to mid-FY28f earnings per share of 1.67 sen. Malacca Securities Research’s arithmetic gives a result of about RM0.25, which the research house uses as its reference point against the RM0.19 IPO price.
The research house also highlights two AI tools still in development. These are an AI Asset Detection Tool for automated geospatial data processing, and an Automated Open Track AI Detection and Early Warning System that uses drones to spot railway obstacles, which is targeted for commercialisation by the end of CY26.
The Risks Behind the Projection
The earnings forecast depends on winning a meaningful share of the RM132.1 million tender pipeline, and none of those tenders is shown as awarded in the report. A single anchor customer also carries heavy weight in the geospatial business, so any change in the Customer A relationship would affect the segment directly.
The AI products and overseas expansion into markets such as Saudi Arabia and India remain at early stages. Their contribution to the projected PATMI range has not been quantified separately in the research summary.
What This Means for Retail Investors
The Malacca Securities Research fair value is a research house estimate, not a guaranteed price, and it rests on earnings assumptions that have not yet been fully delivered. Investors comparing the RM0.25 figure with the RM0.19 IPO price should check the tender win rate and CTS contract execution in future results.
The full report, including the detailed assumptions and financial tables, is available from M+ Online. Readers should review the document directly before forming a view on RedPlanet Berhad.
Key Takeaways
- Malacca Securities Research assigns RedPlanet Berhad a fair value of RM0.25, a 31.6% upside from the RM0.19 IPO price.
- The valuation uses a 15.0x PE on mid-FY28f EPS of 1.67 sen.
- Core PATMI is projected at RM6.4 million to RM8.6 million over three years, with a 10.7% earnings CAGR.
- Two CTS contracts worth a combined RM32.5 million add a second growth engine to the PIES® rail business.
- An RM132.1 million tender pipeline across 11 bids is the main source of forward visibility.
Frequently Asked Questions
What is the fair value of RedPlanet Berhad according to Malacca Securities?
Malacca Securities Research assigns RedPlanet Berhad a fair value of RM0.25 per share. The research house calculates this from a 15.0x PE applied to mid-FY28f EPS of 1.67 sen, implying a 31.6% upside from the RM0.19 IPO price.
What is the PIES® System and where is it deployed?
PIES® is RedPlanet’s proprietary Platform Intrusion Safety System, which detects people on railway platforms and signals trains to stop entering the station. According to Malacca Securities Research, it has been deployed at more than 88 stations across the Kelana Jaya, Ampang and LRT3 Shah Alam lines.
How much core PATMI does the research house expect RedPlanet to earn?
M+ Online’s research team projects core PATMI of RM6.4 million to RM8.6 million over the next three years. This implies a 10.7% three-year earnings compound annual growth rate, according to the report.
Where can I read the full RedPlanet Berhad research report?
The full Malacca Securities report on RedPlanet Berhad is available from M+ Online at mplusonline.com. The document contains the detailed assumptions behind the fair value and earnings forecasts.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 06 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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