• An established web-based solutions player for the General insurance (e-cover), financial (e-PPA) and legal services (InfoGuardian). Rexit is a solutions partner of choice that focuses on delivering solutions and services to the General Insurance, financial and legal services industries in Malaysia and Asia markets. Rexit’s business model is the provision of Software as a Service (“SaaS”) which is based on a ‘pay per use’ basis and enjoys an average net profit margins of 32% from FY11-9MFY17.

• The SaaS model was adopted in order to help companies to address the biggest concerns in IT investments, namely the high capital expenditure, difficulties in retaining IT expertise, the technology risk, and the high costs of operating and maintaining IT systems. The successful localization and implementation of its software in overseas countries has further enhanced the marketability and the acceptability of its products and services.

• Rexit e-Cover-Enabling online insurance transactions suite of web based solutions which provided an on-line system for insurance companies and their intermediaries. Insurance transaction data is now entered by thousands of agents. This portal has since launched the De tariffed Module to cater for the market liberalization with the first phase in the progressive liberalization of the motor tariff in July 2017. This Module and its proprietary Rating Engine have been implemented in both Thailand and Singapore. The e-Cover system is currently deployed in Malaysia, Singapore, Thailand and Hong Kong.

• Although Rexit’s core business is focused on the Insurance industry, it has recognized the opportunities in expanding its business model in the other financial services sector such as the Malaysian unit trust industry following its appointment by the Federation of Investment Managers Malaysia (“FIMM”) as the third party administrator for electronic submissions by their member companies to the EPF. The application known as the e-Pelaburan Pilihan Ahli ( e-PPA–Enabling online unit trust investment through EPF ) system is an industry platform for the submission of unit trust investment and redemption applications which are settled electronically using the EPF member’s contributions. The e-PPA system is adopted by all FIMM as well as non-FIMM member companies.

• Rexit has further broadened its solutions with the introduction of the Work management Suite ( InfoGuardian–Enabling online legal documentation ) . InfoGuardian is an integrated workflow, case management and document management system specially designed for the financial and legal services industries, to provide and facilitate an on line information sharing environment for multiple users within and outside customer organizations. InfoGuardian is used by an international Islamic bank and a local bank together with their panel of legal firms and property valuation firms.

• Signs of bottoming following the Tweezers bottom formation. Share prices fell to a weekly low of RM0.805 (29 May) following its exclusion from the latest Shariah list but managed to end at RM0.84 last Friday. Following the formation of Tweezers bottoms and bottoming up indicators, the stock is poised for further technical rebound to retest immediate resistance at RM0.855 (10-d SMA). A decisive breakout above RM0.855 will spur prices higher towards RM0.875 (50% FR) and RM0.945 (52- week high) before reaching our LT objective at RM0.98 (123.6% FR). Key supports are situated near RM0.80-0.805. Cut loss at RM0.785.

Source: Hong Leong Investment Bank Research - 5 Jun 2017