RAM’s market leadership buffers challenging market conditions

Published on 31 May 2019.

Share Tweet Email

RAM Holdings Berhad (RAM) at its 28th Annual General Meeting (AGM) today, reported a profit after tax of RM8.36 million for financial year ended 31 December 2018 (FYE 2017: RM9.86 million), on the back of RM44.32 million of revenue. During the AGM, shareholders approved a first and final single-tier dividend of 35 sen per ordinary share for the year. RAM’s Chairman Tan Sri Amirsham A Aziz highlighted that “RAM will remain robust and market-ready to face keener competition from the un-rated market and technology disruption in the financial services industry”.

RAM’s core subsidiary, RAM Rating Services Berhad (RAM Ratings) maintained its leadership in the domestic bond market, having secured 73% of the total rated new issues in 2018. RAM Ratings was also recognised by CPI Financial as the Best Rating Agency for the second consecutive year - a testimony to RAM Ratings’ outstanding contribution to Islamic finance, particularly sukuk. Meanwhile, RAM Consultancy Services Sdn Bhd (RAMC) gained traction in driving sustainability services and environment, social and governance analytics. RAMC is the first ASEAN-based provider of sustainability ratings and is the first Registered Observer of the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in this region. Another subsidiary, RAM Solutions Sdn Bhd issued credit opinions to three ventures under the Investment Account Platform which raised RM46 million of financing in 2018. 

We project a GDP growth of 4.6% for Malaysia this year supported by resilient private consumption. Lingering global and local economic uncertainties will keep exerting an impact on the capital markets and business sentiment. 

The corporate bond market remains healthy. As of April 2019, gross corporate bond issuance amounts to RM37.5 billion, mainly constituting sizeable issues from both the private and quasi-government sectors. Taking into account the better-than-expected momentum at the start of the year, and the anticipated steady issuance pipeline for the rest of the year, we have revised upwards our projected gross corporate bond issuance to between RM90 billion - RM100 billion for 2019, from RM70 billion - RM80 billion in 2018. 

Media contact
Sakinah Arifin
+603 3385 2505

Padthma Subbiah
+603 3385 2577