MORNING CALL: 6/9/23

GHL Systems is the largest player in the terminal payment business in Malaysia

Transcript

00:00 This morning our stock in focus is payment solutions provider GHL Systems.

00:06 Kenanga Research maintaining its outperformed rating on the stock with an unchanged target

00:11 price of 98 cen, the counter last traded at 82 cen.

00:16 Some key takeaways from GHL's post 2Q briefing that Kenanga attended.

00:21 According to the research house, GHL is a bit on 3Q given the strong transaction payment

00:27 value momentum seen in July.

00:29 Meanwhile, the return of travelling and wider usage of Alipay has boosted cross-border e-wallet

00:35 transactions which now make up 20% of e-wallet payments.

00:39 The group expects the trend to continue into 3Q with a gradual return of international

00:44 tourists especially from China.

00:46 As for its higher margin products, they're on track to hit the market now that GHL's

00:52 obtained all the requisite approvals.

00:54 Its direct merchant acquisition via the Mastercard gateway will be rolled out in the Philippines

00:59 this month and Thailand this December.

01:01 Overall, Kenanga likes GHL.

01:04 It's the largest player in Malaysia's terminal payment business, it's ventured into the buy-now-pay-later

01:09 scheme and has a growing presence in neighbouring countries.

01:13 Quick look now at consensus.

01:15 According to Bloomberg data, there are six buy recommendations on the stock and one sole

01:19 hold from Maybank Investment Bank Research.

01:22 Average target price, RM1.02, that's 24% higher than GHL's last close of 82 cent.

01:29 [music]