Rexit Berhad

$REXIT / 0106 (REXIT BERHAD)
Research by TA

KUALA LUMPUR: Rexit Bhd, Nestle (M) Bhd, DXN Holdings Bhd, AWC Bhd, Vitrox Corp Bhd, AirAsia X Bhd (AAX) and Pavilion Real Estate Investment Trust (Pavilion-REIT)

KUALA LUMPUR: Shares in Rexit Bhd dropped 4% in early Friday trade after news broke that two major shareholders were sentenced to jail by a Singaporean court for conspiring with an alleged Chinese cybercriminal to obtain the personal data of over 9,300 individuals illegally.

$REXIT / 0106 (REXIT BERHAD)
Research by TA
Buy - TP RM1.03

"Largely Within Expectations"

No change to our target price of RM1.03, based on unchanged 12x CY25 earnings. Upgrade the stock from Hold to Buy following the recent weakness in share price.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

$REXIT / 0106 (REXIT BERHAD)
Research by Malacca
Cease Coverage

"Ended FY24 Within Expectations"

Reallocating resources and cease coverage. Despite the stable outlook on REXIT, we terminate our coverage on REXIT due to a reallocation of resource. Our last rating on the stock was a BUY with a target price of RM1.16, pegged to a P/E of 14.0x applied to FY25f EPS of 8.3 sen. We also assume a payout ratio of 70.0% of its distributable income from FY25f, translating to dividend per share of 5.8 sen and a dividend yield of 6.4%.

Analyst:
Loui Low
louilow@msec.com.my

$REXIT / 0106 (REXIT BERHAD)
Research by Melacca Securities
BUY – TP RM1.16

" New Management On Board "

RM1.16. Since the share price has retraced to RM0.94, we upgrade from Hold to Buy with a TP of RM1.16. The TP of RM1.16 is derived by ascribing a P/E of 14.0x to FY25f EPS of 8.3sen. Also, we assumed a payout ratio of 70.0% of its distributable income from FY24-25f, translating to dividend per share of 5.3-5.8 sen.

Analyst:
Loui Low
louilow@msec.com.my

$REXIT / 0106 (REXIT BERHAD)
Research by TA
Buy – TP of MYR 1.26

“9MFY24 Results Beat Expectations ”

After revising the earnings forecasts and rolling forward our valuation base year to CY25, we revised the target price from RM0.965 to RM1.26, based on an unchanged PE multiple of 14.0x CY25F EPS. Maintain a Buy call on the stock.

Analyst(s):
Chan Mun Chun
mcchan@ta.com.my

$REXIT / 0106 (REXIT BERHAD)
Research by Mplus
Hold – TP of MYR 1.16

“9MFY24 Came In Above Expectations”

For 3Q24, REXIT registered a core PATMI of RM3.4m, declined 14.5% QoQ, but jumped 57.0% YoY, bringing the 9MFY24 core PATMI to RM10.3m. The core earnings for 9MFY24 came in above our expectation, accounting to 89.7% of our earnings forecast of RM11.4m and 87.7% of consensus estimates. The key deviation was due to higher-than-expected hardware, systems software sales and software sales and services for FY24.

Analyst(s):
Loui Low
louilow@msec.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

$REXIT / 0106 (REXIT BERHAD)

Change in Boardroom - MR CHUA OOU CHUAN

Change in Audit Committee - MADAM AMARJEET KAUR A/P RANJIT SINGH

Change in Boardroom - MR TEOH WEI YEE

Change in Nomination Committee - MR CHAN CHEE YUAN

Change in Audit Committee - MR TEOH WEI YEE

Change in Boardroom - DATO' ABDUL MURAD BIN KHALID

Change in Nomination Committee - MISS SEOW JING HUI

Change in Boardroom - MR WONG TACK HENG

Change in Remuneration Committee - MISS SEOW JING HUI

Change in Audit Committee - MR CHAN CHEE YUAN

Change in Boardroom - MR CHAN CHEE YUAN

Change in Boardroom - DATO' SEOW GIM SHEN

Change in Boardroom - MR KUAH HUN LIANG

Change in Boardroom - MISS SEOW JING HUI

Change in Boardroom - MR SI THO YOKE MENG

Change in Boardroom - DATUK CHUNG HON CHEONG

Change in Remuneration Committee - MR CHAN CHEE YUAN

TAKE-OVERS & MERGERS (PARAGRAPH/RULE 9.19 (47A))

$REXIT / 0106 (REXIT BERHAD)
Research by Malacca Securities
Sell - TP of RM0.945

"1HFY24 Within Expectation"

Within expectation. In 2Q24, REXIT recorded a core PATMI of RM3.7m, increased  29.7% QoQ and 33.7% YoY, respectively, bringing the 1HFY24 core PATMI to  RM6.5m. The core PATMI was adjusted for the one-off hardware, system software  sales, which is c.RM0.4m in the bottomline. The core 1H24 earnings came in within  our expectation, accounting to 56.6% of the earnings forecast of RM11.4m as we  believe the earnings may normalise in 2H24. 

Analyst(s):
Loui Low
louilow@msec.com.my

$REXIT / 0106 (REXIT BERHAD)
Research by TA
Buy - TP of RM0.965

"A Strong Set of Result"

Generally, we expect Rexit to continue posting resilient revenue with stable growth in the upcoming quarters. Meanwhile, we also view the upside to revenue from ancillary software customisation services.

Analyst(s):
Chan Mun Chun
mcchan@ta.com.my