Round Hedge Stock Research

Author: roundhedge   |   Latest post: Fri, 27 Jul 2018, 10:25 AM


Revenue Group Bhd - Cashless ambition on the move

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Revenue Group Bhd ("Revenue"), a cashless payment solutions provider in Malaysia is making its debut on the ACE market today. BUY with a target price of RM0.60 based on 17x PER FY19 as per the average of FBM Small Cop Index and closest related peer. 

Founded in 2003, Revenue has evolved from m Electronic Data Capture ("EDC") vendor Into a multi-channel payment solution provider_ Revenue's business segments are divided into deployment of EDC terminals, electronic transaction processingas well as solutions and services related to payments infrastructure. 

The electronic transaction processing is facilitated by its flagship platform revPay to process transaction in various channels whether through EDC terminals, virtual payments or GR payment. revPay acts as the focal point linking its extensive range of customers including finoncial institutions leg: AmBank. OCBC Bonk), card scherres and e-money payment scheme (eg: My Debit, Union Pay) and merchants together. 

Contnbuting 25.5% to total sales, Revenue's non-disclosable major customer (Company A) Is China's leading mobile and online payment solution company. Since 2013. Revenue is Company A's only partner in Malaysia to process outbound Internet banking payment for purchases made by Maloysicn consumers on their affiliate's online marketplace in China. The transactional value from Company A's affiliate online marketplace In China Jumped more than four-fold from RM68.2m to Rm298.1m from FY15 to FYI 7. 

Of the total RM20.6m IPO proceeds, 39.3% or RM8. I m Is earmarked for the purchasing of new EDC terminals with capability to accept OR payment while 19.6% or RM4.0m Is allocated for the enhancement of revPAY and expansion of the IT team. 

Post listing, the Company's gearing ratio is expected to improve from 0.41x to 0.15x In addition to Revenue's on-going expansion, Bonk Negara's initiatives to push for a cashless society should push its net profit (excluding a oneoff gain for FYI7) toexpand bycirca 32% and 23% in FY 18 and FYI 9 respectively. 

Source: Rakuten Research - 18 Jul 2018

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Chart Stock Name Last Change Volume 
REVENUE 1.13 +0.02 (1.80%) 475,600 

  Be the first to like this.
kyosan TFP also have , but..umno guys still there holding which I think no one want to take risk,
19/07/2018 11:00
pussycats to many pay apps or e- wallets... Who will win... Revenue?
19/07/2018 18:16
apolloang cashless.....tak mahu lah,i like the smell of hard cold cash.....hahaha
19/07/2018 18:19


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