• Business profile. ManagePay Systems Berhad (MPay) is engaged in the provision of integrated electronic payment solutions. The Company operates in five segments: Payment services, Terminal services, Loyalty Management services, Business process outsourcing, and Software and ICT services.
• Early signs of bottoming up. After tumbling 50.7% from 52-week high of RM0.365 (20 May) to a low of RM0.18 (25 Aug), MPAY share prices staged a relief rally of 63.9% to a high of RM0.295 (29 Oct) before trending sideways to end at RM0.275 yesterday.
• Currently, it is building its base near RM0.26 (50-d SMA) and RM0.265 (100-d SMA). Except daily MACD and RSI, all hourly and daily oscillators are showing early signs of bottoming up. Hence, a decisive breakout above RM0.29 (daily upper Bollinger band) could provide further impetus to retest short term upside targets of RM0.295 (61.8% FR) and RM0.325 (76.4% FR) levels. Cut loss at RM0.255.
• Good risk to reward ratio with 18.2% upside against 7.2% downside. All in, we see a good risk to reward ratio for investor with a theoretical entry price of RM0.275 given that the downside to the cut loss zone of RM0.255 is 2 sen (- 7.2%) while the upside to the R3 target of RM0.325 is 5 sen (+18.2%).

Source: Hong Leong Investment Bank Research - 17 Nov 2015