Plus the Juristech acquisition, I'm positive on the PP, it won't translate to immediate revenue growth, but it shows they have desire & hunger for growth, rather than settling as just a credit reporting agency.
Having a small stake in Thailand also bodes well for the future, because the high-speed rail from Thai to China will begin operating in 2026, Thailand's economy will be much stronger than Msia in the next decade.
But as this is a high-PE counter, Ctos' share price will be under pressure as long as the Ukr-Rus war is on-going.
"CTOS Digital Bhd’s net profit soared 62.3% to RM12.48 million for its first quarter ended March 31, 2022 (1QFY22) from RM7.69 million last year"
"Revenue rose 12.4% to RM42.7 million, from RM38 million. Share of profits of associates grew 45.8% to RM2.4 million, contributed by CTOS' 49% stake in Juris Technologies acquired in March, and higher profit from Business Online Public Company Ltd"
"The group's earnings per share (EPS) rose to 0.6 sen, from 0.4 sen. CTOS keeps to its 60% dividend payout ratio by declaring a first interim dividend of 0.325 sen per share that will be paid out on June 10, 2022"
BANK Negara Malaysia is understood to be on track to announce this week the five winners of digital banking licences in the country. In the first half of 2021, some 29 applicants submitted their bids.
Front runners in the bid are said to include the 60:40 joint venture (JV) between RHB Bank Bhd and Axiata Group Bhd via its fintech arm Boost; a JV between Grab Holdings Inc and Singapore’s telco group Singapore Telecommunications, or Singtel, with a consortium of investors that includes the Kuok Group; and a consortium led by Sunway Bhd.
Also tipped as a front runner is YTL Corp Bhd, which has reportedly submitted a bid with Singapore’s Sea Group.
It is understood that the central bank is also seeking one consortium that could meet the criteria for the provision of Islamic financial services in the country, in order to cater to this segment while also incorporating Islamic finance as one of its key vehicles to advance sustainability-related efforts.
KUALA LUMPUR (April 25): Kenanga Research has upgraded CTOS Digital Bhd to "outperform" (OP) at RM1.52 with a higher target price (TP) of RM2 (from RM1.85) and said the company’s 1QFY22 normalised PATAMI of RM16.9 million (+3% y-o-y) and interim dividend of 0.32 sen are both deemed to be within expectations.
In a note on Monday (April 25), the research house said it anticipates progressively healthier earnings in the coming quarters fuelled by both organic and inorganic growth in the company’s credit information and analytics solutions divisions.
“Following the recent share price weakness, we believe current levels present a buying opportunity.
Kenanga said CTOS is likely to continue benefiting from the increasing demand for credit information checks and analytics capabilities.
“We believe demand for such services will only increase as a consequence of economic recovery and lending needs,” it said.
The research house said the recent acquisition of stake in RAM Holdings, BOL and JurisTech is poised to deliver inorganic growth while still staying true to the firm’s core business line.
“The ongoing integration of JurisTech into the group could materialise into scalable end-to-end digital lending solutions.
“Upgrade to OP with a higher TP of RM2 (from RM1.85),” it said.
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