GHLSYS's partnering with Globe Telecom (Philippines) to provide mobile e-payment services (Global Charge) for Micro & Small-Medium Scale Enterprise in Philippines.
CIMB quoted , the prime targeted clientele for such Global Charge are to serve non-account holders which contributed to 60% of the population in The Philippines. Merchants shall accepts pre-paid cards, credit cards and debit cards payment via card readers linkage through Mobile Phone & Tablets. GHL are paid commission for the card readers' transaction services. The cost for mobile's card reader ( ~50USD) is much lower than the cost for standard card reader (150USD)
At present, Global Telecom charges merchants approx. 290 basis points for the transaction, GHL could obtain a 50~60 basis point commission according to CIMB. Such a collaboration between GHL & GlobalTelecom does not come as a surprise as GHL has earlier indicated their plan in The Philippines. Albeit, this could be expected to bring positive impact to GHL's FY15 2nd half financial result, CIMB would not be revising GHL EPS forecast as this collaboration has already been included into the forecast earlier.
Let us do a easy DCF calculation. Using terminal growth rate of 5%, discount rate of 10%. At current price of $1.02, GHL needs to grow at 26% every year for the next 10 years to justify this buying price. For analyst TP of 1.40, GHL need to grow at 30% for the next 10 years to justify it.
your statement is misleading....Terminal growth rate 5%? pls show data to jusify why 5%? Msia is another untapped market with huge potential to get more terminal. The growth for next 5 years down the road is much more than 5%. you cannot stop technology, when everyone is moving into electronic payment transactions.
there is no data to justify, im just telling you this is the market expectation right now. Also please reread, terminal is 10 years after not 5. Of course you can input any number you think you like, pluck from the sky, how about terminal growth rate of 10% - I know 10% sounds too little, you must be thinking at least 50%, but wait, 10% will give you target price of $58.69 already. my goodness, 5800% upside, throw everything you can into GHL.
I forgot to tell you, technology that change the world, name you a few, radio, television, automobile, airplane, internet, yes they do change the world, but im not so sure if investors actually make money.
Malaysia is an untapped market tells you nothing about how a company will make money. Many months ago, everyone says IFC have such a big potential going into China, imagine how many property developers in China will use their software, you are talking billions of revenue, but that say nothing about how a company makes money. I can give you $100billion untapped market, and i give you 1000 competitors, and ill let you guess who wins.
I bought 1000 units weeks ago @ rm0.88. I see the future of cashless payment system (just like Visa or Mastercard) in Malaysia, Phi & Thai. However, it is really hard to value GHL...no dividend payout, negative FCF. So I try to give it max 3x of P/B value. 3 x rm0.35 NA per share = Max rm1.10. Hopefully GHL will not go overvalue so soon.
"If when you say whiskey you mean the devil's brew, the poison scourge, the bloody monster, that defiles innocence, dethrones reason, destroys the home, creates misery and poverty, yea, literally takes the bread from the mouths of little children; if you mean the evil drink that topples the Christian man and woman from the pinnacle of righteous, gracious living into the bottomless pit of degradation, and despair, and shame and helplessness, and hopelessness, then certainly I am against it.
But, if when you say whiskey you mean the oil of conversation, the philosophic wine, the ale that is consumed when good fellows get together, that puts a song in their hearts and laughter on their lips, and the warm glow of contentment in their eyes; if you mean Christmas cheer; if you mean the stimulating drink that puts the spring in the old gentleman's step on a frosty, crispy morning; if you mean the drink which enables a man to magnify his joy, and his happiness, and to forget, if only for a little while, life's great tragedies, and heartaches, and sorrows; if you mean that drink, the sale of which pours into our treasuries untold millions of dollars, which are used to provide tender care for our little crippled children, our blind, our deaf, our dumb, our pitiful aged and infirm; to build highways and hospitals and schools, then certainly I am for it." - Noah S. Sweat
Depends how you want to put it, you can always find a reason when you want it.
'Insider news GHLSYS loss more that 3 million'. Where is the 3rd Q loss? what a crap is this type of information that created panic selling in the shares. Be mindful of what you write and be more professional to avoid people cursing you.
The 3rd Q 3 months profit is RM1.066 against RM1.762 last year. Year to date 9 months to 30/9/2015 profit is RM7.106 against RM6.345 last year. The main growth of GHLSYS will come from the TPA implementation which the company states in its 2nd Q and 3 Q report that it will gather momentum only in 3Q 2015 in Malaysia and in the Philippines implementation will only start in 4Q2015. This means from 4Q2015 profits from the Malaysian TPA operation will start to kick in and from the Philippines very likely from 3Q 2016.
Thus in 4Q 2015 and the whole year 2015 expect reasonable profit improvement from the company. 2016 and 2017 are the years you will really see the profits of GHLSYS shooting up. So hold tight for the long term investors .CIMB list GHLSYS as one of the most promising companies in 2017 and expect its share price to be more than RM2 by then.
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....
WiseEye
1,199 posts
Posted by WiseEye > 2015-07-10 12:52 | Report Abuse
Actually no one bothers him. Just another amateur investor lost in direction and hope.