KUALA LUMPUR: Radiant Globaltech Bhd (RGTech) expects robust growth momentum ahead, backed by accelerated demand for digitalisation of operations in the retail and industrial sectors.

CGS-CIMB Research, in a note today, said higher adoption of digital solutions to automate business processes (operating efficiency) would drive demand as business continuity issues rise in prominence following the Covid-19 pandemic.

"RGTech's future growth will be fuelled by new customer acquisitions both local and overseas, growth plans of clients (new stores and factories), and further digitalisation efforts of existing customers," it said.

RGTech is an ACE-market listed company providing integrated technology solutions for automation and digitalising purposes, targeting the retail, food and beverage (F&B) and industrial sectors.

CGS-CIMB Research said RGTech completed three acquisitions since October 2020, including an 80 per cent stake in Grand-Flo Spritvest Sdn Bhd for RM11.6 million in October 2021.

It has also, in January 2020, signed a joint venture (JV) with Simat Technologies Public Co Ltd to enter Thailand's F&B market.

"RGTech said these acquisitions and the joint venture are expected to create synergies with its existing businesses, widen its product offerings, and diversify its customer base," the research firm said.

CGS-CIMB Research said RGTech does not appear to have any directly comparable peers listed locally, given its exposure to retail and industrial automation technology solutions.

RGTech is not rated by CGS-CIMB Research.