ITS reported 9M26 revenue of $42.6mil +20% YoY. ITS didn’t publish a 2Q figure but based on the 1H quarterly average of $13.65mil 3Q revenue grew by a solid ~12.1% QoQ (~57.9% on an annualised basis). We maintain our FY26F forecasts for now.
RHTC still expects significant SME Corp training demand pick up as well as due to the launch of the Info-tech Academy in Malaysia before the end of FY26, with courses approved by HRD Corp and eligible employers can seek funding to pay for the courses.
Price. Valuation gap vs Peer group has increased. ITS trades at a significant valuation discount at 7.4x FY26F PE, 0.12x PEG and 3.0x EV/EBITDA vs global SaaS peers [Paycom, Paylocity and Workday] with an average FY26F PE of 17x and EV/EBITDA of 19.1x.
RHTC’s valuation framework is a Total Shareholder Returns approach: At current levels, Div Yield 8.4%, FCF Yield 22%, ITS expected Target Price at $2, an upside of 158%.
