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THE strategic acquisition of RAM Holdings Bhd will fit into the overall business plan of credit rating agency CTOS Digital Bhd especially given its earnings accretive nature.
Meanwhile, Maybank IB Research expects CTOS’s shareholding in RAM to increase from 19.2% currently to between 51% and 81% following its general offer to the remaining shareholders of RAM at an indicative equity valuation of RM280 mil-RM300 mil.“We maintain a ‘buy’ rating and forecasts, but trim our target price to RM1.86 (from RM2.17 previously) based on lower regional median PEG (price/earnings-to-growth) of two times (from 2.2 times previously).At 9.20am, CTOS was unchanged at RM1.21 with 198,200 shares traded, thus valuing the company at RM2.79 bil.
Moreover, CTOS shared that they will hold off further business purchases for the next one to two years and will instead focus on assimilating recent acquisitions.
Article Details
Author / Journalist: Cheah Chor Sooi
Category: InvestingMarkets
Topics: Markets Top
Source Website Secure: Yes (HTTPS)
News Sentiment: Neutral
Fact Checked: Legitimate
Article Type: News Report
Published On: 2022-06-22, 02:40:28
News Timezone: GMT +8:00
News Source URL: focusmalaysia.my
Language: English
Reading Time: 3 minutes read
Article Length: 400 words
Coverage Area: Malaysia
Availability: Desktop Web, Mobile Web
News ID: 2786
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Main Topics: InvestingMarkets
Official Website: focusmalaysia.my
Update Frequency: 19 posts per day
Year Established: 2012
Headquarters: Malaysia
News Last Updated: 8h ago
Coverage Areas: Malaysia
Ownership: Independent Company
Publication Timezone: GMT +8:00
News Language: English
RSS Feed: Available (XML)
Website Security: Secure (HTTPS)
Publisher ID: #16
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