This report is an updated version of the report published on 21 March 2025 at 3:46 PM AEDT

RAS Technology Holdings Limited (ASX: RTH)

RAS Technology Holdings Limited (ASX: RTH) is a provider of integrated data and content for the global racing and wagering industries.

Recommendation Rationale - SELL at AUD 0.83

• Other Income Declined: In the first half of FY25 ended 31 December 2024, RTH’s other income declined by 41% annually to AUD 0.423mn. Meanwhile, employee expenses jumped to AUD 4.48mn in H1FY25 vs AUD 4.25mn in H1FY24.
• Technical Observation: RTH shares have crossed their R1 mentioned in the report dated 17 March 2025. Its 14-day Relative Strength Index (RSI) at ~61.43 indicates the stock is approaching overbought zone and may witness retracement soon.
• Overvalued Multiples: On a forward 12-month basis, RTH’s trading multiples such as Price/Earnings and Price/Book Value are higher than the industry (Software & IT Services) median.
• Dependence on Key Customers: A significant portion of RTH's revenue comes from a few major clients. Loss of a key customer or changes in contractual terms could adversely affect the financial performance of the company.

RTH Daily Price Chart

Valuation Methodology: EV/Sales Approach (FY June'26E) (Illustrative)

RTH is expected to trade at a slight premium to its peers considering revenue growth, increase in EBITDA, and the reported net profit in H1FY25, acquisition of six leading Hong Kong-based racing data and editorial publications for HKD 20.0 million. For conducting valuation, the following peers have been considered: Synertec Corporation Ltd (ASX: SOP), Af Legal Group Ltd (ASX: AFL), Count Ltd (ASX: CUP), and others.

Considering that the stock has crossed its R1, the recent rally in share price, current trading level, and risks associated, the share price can witness resistance at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 0.83, at 2:29 PM AEDT, as of 21 March 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 21 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.