POSSIBLE MOMEMTUM TRADING OPPORTUNITY
We are positive on AppAsia Bhd’s (“APPASIA”) foray into being the sole service provider for electronic bank confirmation platform in collaboration with Malaysian Institute of Accountants (“MIA”). This is set to be game changer for them and expect to see significant contributions from FY21 onwards when it becomes the new normal for audit confirmation. BUY with a target price of RM0.68 premised on 25x PER FY21 as per Bursa Technology Index.
Disclaimer: The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.
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Really eye opening..... Audit bank confirmation is selling point for this company? Oh my god, pengsan....
Let do the math:
1) 400 audit firms = each has no of clients of 500
2) Estimated each client company has opened 1.5 bank accounts.
3) So, total bank confirmation needed = 300,000 PER YEAR!!!
What is estimated fee can charge for each confirmation? RM1? RM2? RM10?
Traditionally, audit firms issue requisition for audit bank confirmation to bank for the client company via ordinary postal mail and bank will reply audit confirmation also through ordinary postal mail.
bank charges the bank account holders for issuing these confirmation are ranging RM50-RM100, depending complexity of the bank products the company has with
LOOK HERE, BANK CHARGE BANK ACCOUNT HOLDER AND ALL DONE VIA ORDINARY POSTAL MAILS
It is now AppAsia offers the alternative way in place of ORDINARY POSTAL WAY.
What do you think how much they can charge bank?
is it competing with Revenue? tq