CEO Morning Brief

ACE Market-bound RichTech Posts RM939,000 Quarterly Net Profit

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Publish date: Thu, 13 Feb 2025, 11:38 AM
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TheEdge CEO Morning Brief
RichTech Digital Bhd managing director Lee Teik Keong says they remain committed in enhancing their service offerings, expanding market reach, and driving greater adoption of their SRS platform. (Photo by Shahrin Yahya/The Edge)

KUALA LUMPUR (Feb 12): Electronic reload and bill payment services provider RichTech Digital Bhd (KL:RTECH), which is slated to float its shares on Bursa Malaysia on Feb 17, posted a net profit of RM939,000 on a revenue of RM1.77 million for the fourth quarter.

Earnings per share for the quarter ended Dec 31, 2024 (4QFY2024) stood at 0.64 sen, according to the ACE Market-bound company's exchange filing on Wednesday.

There are no comparative figures for the preceding corresponding quarter as this is the first interim financial statement announced by the company to comply with the listing requirements.

For FY2024 as a whole, the company’s cumulative net profit totalled RM5.97 million, on the back of RM9.19 million revenue.

Full year gross sales, meanwhile, dropped 1.3% to RM657.09 million, from RM665.42 million in FY2023, mainly due to lower transaction volumes across the reload and bill payment segments.

Reload sales were down 1.3% year-on-year to RM503.9 million, while bill payment services fell 1.2% to RM153.19 million, according to the company.

Still, total commission revenue rose 17.9% to RM9.19 million from RM7.8 million in FY2023, thanks to better cost efficiency, a shift in market dynamics and the company's competitive advantages.

“Looking ahead, we remain committed in enhancing our service offerings, expanding our market reach, and driving greater adoption of our SRS platform,” RichTech managing director Lee Teik Keong said in a statement.

“Through strategic partnerships and collaborations, we aim to reinforce our position in the electronic reloads and bill payments industry while continuously delivering long-term value to our stakeholders,” he added.

At 25 sen per share, RichTech is seeking to raise RM20 million in proceeds from its initial public offering, of which 30% or RM4.5 million is earmarked for marketing, promotional and collaboration activities aimed at growing the user base on its digital apps, SRS App and SRS Portal.

The company also plans to spend RM3 million to acquire a new office to consolidate its headquarters and branch office under one roof, with an estimated built-up area of up to 6,000 sq ft.

RichTech will have a market capitalisation of about RM50.61 million upon listing — based on its enlarged share base of 202.45 million shares — valuing it about six times its earnings in FY2023.

Source: TheEdge - 13 Feb 2025

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