KUALA LUMPUR (June 11): Shares of Managepay Systems Bhd (KL:MPAY) rose to their highest in nearly five months on Tuesday after the electronic payment services firm secured a contract to develop an app for national railway company Keretapi Tanah Melayu Bhd (KTMB).

The counter rose as much as 21% or 2.5 sen to 14.5 sen — its highest since Jan 16 — before it pared some of the gains to close at 13.5 sen. Still, it is up 1.5 sen or 12.5% compared to Monday's close.
At 13.5 sen, the company is valued at RM125.1 million.

About 40.7 million shares changed hands, about 42 times the 200-day moving average of 961,107 shares.

Currently, the stock is not covered by any analysts.

The company said on Monday that its wholly owned unit, ManagePay Services Sdn Bhd (MPSB) had accepted the contract from KTMB for a five-year period, with an option for a five-year extension, contingent upon its satisfactory performance.

The contract value was not disclosed.

The app is expected to improve user experience and potentially encourage ridership on KTMB's railway network, according to Managepay.

Additionally, it noted that the project is expected to contribute positively to the group’s revenue from the next financial year ending June 30, 2025 (FY2025) and onwards.

The company’s net profit was RM872,000 for the three months ended March 31, 2024 on revenue of RM4.34 million, contributed by its fintech services. This marks the group's first profit after eight consecutive quarters of net losses.

Managepay has changed its financial year end from Dec 31 to June 30.

Managapay mainly provides payment services and sells point-of-sale terminal services to large retail chains in Malaysia such as Kentucky Fried Chicken, Pizza Hut, Giant, Guardian, Mercato and Cold Storage, according to its website.

The company, founded by its current managing director Datuk Chew Chee Seng, also provides software and digital security, information communications, e-commerce and technology services.

Chew is the single-largest shareholder in Managepay with 28.61% followed by Nova Newlook Sdn Bhd which bought a 6.48% stake on May 31 and Richworks International Capital Holdings Sdn Bhd, the private vehicle of its non-executive director Datuk Wira Dr Azizan Osman.

Azizan, known among local entrepreneurs for his marketing courses, owns a 5.11% stake in Managepay.