• Focused on delivering complete and customisable payment solution to key partners across various industries such as AmBank, Affin Bank, Visa, MasterCard, MEPS, Petronas, Taobao.com, Touch ’n Go and Giant.

• Capitalising on the rising adoption of e-payment nationwide, whilst the Covid-19 pandemic has sped up adoption for QR payments in order to minimise contact.

• Acquisition of 40.0% equity stake in artificial intelligence (AI) company Wannatalk Malaysia Sdn Bhd value-add into the business to business to consumer (B2B2C) solution. Technically, a trendline breakout above RM1.18 may drive share price higher towards the next resistances at RM1.27-1.30 with long term target at RM1.40.

Trading Catalyst

• Revenue Group Bhd (Revenue) was established in 2003, focusing on delivering complete and customisable payment solution. Some of the group’s key partners include companies across various industries such as AmBank, Affin Bank Real Rewards, Comex GeneSys, Visa, MasterCard, MEPS, VeriFone, Petronas, Taobao.com, Gucci, Prada, Touch ’n Go and Giant.

• We like Revenue for their position as one of the leading e-payment solutions provider in Malaysia, capitalising on the rising adoption of e-payment nationwide. We view the migration to e-payments an integral part of the digital economy, whilst the Covid-19 pandemic has speed up the adoption for QR payments in order to minimise contact.

• Moving forward, the acquisition of 40.0% equity stake in artificial intelligence (AI) company Wannatalk Malaysia Sdn Bhd for RM5.0m will able to enables Revenue to integrate Wannatalk services to value-add into the business to business to consumer (B2B2C) solution. Upon completion (targeting in October 2020), the acquisition also provides a profit guarantee of RM300,000 and RM500,000 for FY21f and FY22f respectively.

Technical Outlook

• Technically, share price is still on a pullback phase after forming a triple top formation over the past couple of months. Price appears to have found its footing following a consolidation over the past two weeks. A trendline breakout above RM1.18 may drive share price higher towards the next resistances at RM1.27-1.30 with long term target at RM1.40. Support is pegged at RM1.13 and cut loss is located at RM1.12.

Source: Mplus Research - 7 Oct 2020