GHL SYSTEMS

Ghl appeared to be active on 21^st October 106 ( Budget Day ) after 3 pm. The volume spike was detected and it closed firmly at 0.85.

Is it just a “budget play” or is it a coincidence for a possible uptrend?

GHL Business mainly consists of Shared Services, Solutions services and Transaction Payment Acquisition (TPA ). The main driver of growth  for GHL lies in the TPA segment.

Transaction Payment Acquisition (TPA) ( Explained In GHL’s Quarterly Report )

The TPA business has 2 distinct components, each in a different stage of development. These are; i) e-pay’s direct contractual relationships with merchants to provide Telco prepaid and other top-up facilities and, bill collection services for consumers (“reload and collection services”) and ii) GHL’s direct contractual relationships  with merchants to provide international and domestic card payment services (“card payment services”). Each of  these is described in more detail as follows:

- E Pay (reload and collection services) e-pay is the largest provider of reload and collection services in Malaysia. It has approximately 25,000 acceptance points nationwide, encompassing all petrol chains, the largest convenience store chains and over 8,000 general stores. The e-pay brand is well known to consumers who use the service. With over 15 years’ experience, e-pay is clearly the market leader in Malaysia within this industry segment.

GHL’s CEO, Kanagaraj Lorenz expects the transaction value and gross margin of the TPA segment to continue to show double-digit growth this year. “Over the longer term, GHL also plans to venture into the Singapore and Hong Kong market by year end. “ ( The Edge, June 29 2016 )

With exciting growth prospects and a stable increase in earnings for the past 5 years, GHL may move to greater heights in the mid term. However, the current PE ratio of 54.34 makes the stock slightly unattractive.

Technical wise, the downtrend has been ongoing for 1.5 years and it may be time for a reversal.

* Do Not enter if there is no price volume spike/activity.

Cashless payment and internet payment solutions is the future. 

Warmest Regards,
Greentrade$


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