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