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Friday, November 28, 2014


Trading ideas – STOCK PICK (summary from various Research Reports)


Current Price : RM 0.73

Target Price : RM 1.06( BUY)

Source : CIMB

• Revenue in 3Q14 was up to RM45.3m compared RM17.3m a year ago, mainly due to higher contributions from the transaction payment acquisition (TPA) segment, which grew from RM3.9m to RM34.6m following the acquisition of e-Pay services in 1Q14.

• GHL posted a higher core net profit of RM2.4m vs RM2m in 3Q13, after accounting for a RM0.6m one-off inventory adjustment.

• Following the integration of e-Pay, GHL's annuity-based revenue increased from 72.9% to 92.8%, which helped the company reduce its earnings volatility.

• It was expected GHL's annuity based revenue to increase further when its credit card TPA business in Malaysia, Philippines and Thailand become operational.

• Management still expects to receive approval from the acquiring bank partner in Malaysia within this quarter before launching its credit card TPA service in Malaysia in 2015.

• Apart from that, GHL is also waiting for the regulatory approval to launch its credit card TPA

service in the Philippines.

• RM1.06 target price is based on 23.8x CY16 P/E, (40% premium over the global payment average of 17x, in view of its stronger EPS CAGR of 75% for FY13-15 and attractive PEG of 0.6x).

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