Target Invest - We Target, We Invest
CENSOF GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88
Malaysia is going to implement e-invoice in stages, with a compulsory implementation by year 2027 in all businesses.
The first stage will be targeted for businesses with turnover exceeding RM 100 million. Subsequently, in 2025 will be business with turnover exceeding RM 50 million. 2026 is for businesses with turnover exceeding RM 25 million, while 2027 will be for all business.
How is this going to benefit Censof in the long run?
Censof core business is to provide software solution for financial management system to both government and commercial SME businesses. To make it easy - their business is "Software as a Service".
According to the latest figure, there are approximately 1.22 million of SME in Malaysia, contributing to 38% of the GDP in Malaysia.
Emergence of a new big market pie with compulsory implementation of e-invoice feature in all businesses.
The type e-invoice that is going to be implemented in Malaysia is going to be real time, to ensure that the e-invoice meet the necessary standards and criteria.
With the real time requirement, the software provider will need to link to LHDN system. Hence the software will need a renewal fee every year for support and maintenance.
With the adoption of e-invoice, it will be estimated that each SME will be needing to pay around RM 3000 to RM 4000 (depends on software complexity and number of users).
In summary, the compulsory implementation of e-invoice will bring about a new big market of RM 3.66 billion worth of business in ecosystem of ERP/POS system. (1.22 million SME x RM 3000)
If Censof is about the capture 15% of the market, that will be worth RM 550 million a year in revenue.
I am invested into Censof for a long term as I can see the potential of the company revenue and profit and dividend growth in the next 3 to 4 years.
Will be looking and sharing Censof software application and potential in the following update.
IMPORTANT NOTICE
Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.
Telegram https://t.me/targetinvest88
More articles on Target Invest - We Target, We Invest
LCTITAN - A POTENTIAL MISSING PIECE OF JIGSAW PUZZLE FOR PETRONAS ?
Created by targetinvest | Aug 12, 2024
HOW LCTITAN CAN BE ROPING INTO THE GREEN HYDROGEN ECOSYSTEM WITH TOLUENE?
Created by targetinvest | May 20, 2024
IS CENSOF WORTH YOUR HOLDING FOR THE NEXT 3 YEARS? READ THIS BEFORE DECIDING
Created by targetinvest | May 17, 2024
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
3
save malaysia!
5
6
7
save malaysia!
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
No trading signals available.
Stock
Time
Signal
Duration
No trading signals available.
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
