Panpage Berhad

Noticed this interesting stock recently, took a look and find it worth to share my thoughts and hopefully can gather more beneficial opinions from others.

Overview and highlights:

Panpage’s business and operations is presently divided into two primary segments: Search and Advertising (S&A) and IT.Their S&A business segment specialize in local business platforms (both print and online), content development and provision of eCommerce platforms. Meanwhile, their operations in IT provides

software solutions, cloud computing and infrastructure solutions. The S&A business segment has expanded geographically to Indonesia, Thailand and Vietnam to establish PanPages.com as a leading local business platform in Southeast Asia.

During year 2013, they have expanded to Indonesia, Thailand, Vietnam and Cambodia with speed to capture new markets and acquire new customers.Our flagship local business platform, PanPages.com is now home to approximately 8 million business listings throughout Southeast Asia. With the importance of content, they have invested in collection of these business listings and users will be able to find products or businesses with ease and accuracy on its online platforms. Their size and quality of content gives them exclusive partnerships with Google, Alibaba and Microsoft.

Their activities under S&A are numerous and conducted on both local and regional fronts. Panpage

specializes in operating local business platforms and internet marketing solutions, including search engine optimization (SEO) and database development.

 Online Advertising and Marketing

Their online advertising and marketing segment was expanded in 2012 following the striking of a partnership

with Google on 5 October 2012. Strategic partner of Alibaba, a global leader in Business-to-Business (B2B) portal that helps millions of buyers and suppliers around the world conduct business online.

They are also the re-seller of Facebook advertisement solutions and other internet advertisement solutions.

 Content Development

Panpages’s collection of business listings is extensive and comprehensive. Their strong database is the reason Google has appointed hem as Google's strategic partner to provide business listings for Google Maps for countries including Malaysia, Singapore, Indonesia, Thailand, Philippines and Vietnam. They are also one of the owners of largest business database in Southeast Asia. They are developing business opportunities utilising their biggest asset in database marketing.

As a provider of largest and most accurate database in Southeast Asia, they managed to have current notable clients such as Google and Microsoft.

What to expected:

-Positive results on their expansions into the SEA market

-Booming internet advertising market in the region

-Strong retained earning close to RM50M

-Partners with internet giant such as Google,Microsoft and Alibaba should see positive impact on their performance regionally

-Drop on profit is due to one off termination of distributionship agreement

-Ride on the hype as partners to Alibaba as it leads to unlimited opportunities

-Directors keep collecting shares at low price, may due to positive future prospect and undervalued shareprice

What's the risk:

-Expansions into the SEA still lagging as its still in early stages

-Termination of partnerships with their notable partners

-Losses due to cost of expansions