• RedPlanet Berhad is an enterprise ICT firm principally involved in (i) the design and implementation of geospatial solutions, (ii) provision of intelligent rail solutions via its proprietary PIES® System, and (iii) trading of ICT solutions and ancillary hardware. The Group serves customers across the public sector, utilities, rail transportation, energy and engineering sectors in Malaysia and also selected international markets.  
• We project 3-year earnings CAGR of 10.7%, with core PATMI expected to reach RM6.4m-RM8.6m over the next three years. This growth is underpinned by (i) aggressive participation in larger-scale tenders for geospatial and intelligent rail projects, (ii) expansion of intelligent rail portfolio into Central Transmission Systems (CTS) and (iii) upcoming introduction of AI-driven enhancement solutions.
• We assign a fair value of RM0.25 per share for RPLANET, indicating a 31.6% upside from the IPO price of RM0.19. This valuation is based on a PE ratio of 15.0x, pegged to mid-FY28f EPS of 1.67 sen.

Investment highlights

Proprietary PIES® System provides a defensible moat in intelligent rail solutions. RedPlanet is the proprietary and technology owner of the Platform Intrusion Safety System (PIES®), a railway safety solution that detects human intrusion on railway platforms and sends a signal to the train system to stop trains from entering the station. PIES® has been successfully deployed at more than 88 stations across Malaysia, covering the Kelana Jaya LRT Line, Ampang Line and extensions, and the LRT3 Shah Alam Line. ATSB Group holds exclusive patents for the PIES® System in Malaysia, Australia, Indonesia, Singapore, the Philippines and Thailand, serving as a significant barrier to entry that underpins its competitive position in the intelligent rail solutions space.

Expansion into CTS solutions opens a second growth engine within the rail segment. Beyond the PIES® System, RedPlanet has recently expanded into the provision of Central Transmission Systems (CTS) solutions, which is the backbone communication network connecting railway subsystems to operations control centres. In 2026, the Group secured two CTS contracts worth a combined RM32.5m: (i) a RM21.6m contract for CTS deployment at the Ampang LRT Line, and (ii) a RM10.9m contract to upgrade the existing CTS at the Kelana Jaya LRT Line. This expansion allows the Group to offer a more comprehensive intelligent rail solution package and tap into a larger addressable market within rail transportation.

Long-standing utility GIS relationship with Customer A anchors the geospatial segment. The Group has been providing geospatial solutions to Customer A, a major Malaysian electricity utility, since 2016. This relationship is underpinned by recurring contracts and purchase orders spanning data collection, processing, digitalisation and migration of Customer A's utility network assets. Given the deep integration of Supplier A Group's geospatial software within Customer A's existing infrastructure, switching costs are substantial, providing a degree of revenue stickiness. RPLANET is also positioning itself for global utility-sector GIS contracts, leveraging its track record to expand into markets such as Saudi Arabia and India.

~RM132.1m tender book and AI-driven R&D provide forward visibility. As at the LPD, the Group has submitted 11 tenders totalling ~RM132.1m (10 tenders for geospatial solutions worth RM101.6m, and 1 tender for intelligent rail solutions worth RM30.5m). In addition, the Group is developing AI-enabled tools, including an AI Asset Detection Tool for automated geospatial data processing, and an Automated Open Track AI Detection and Early Warning System for railway obstacle detection using drones, targeted for commercialisation by end of CY26.