It is absolutely nothing wrong to sell high buy low. But you need to look at the quantum disposed vs quantum purchase. Dino sold more than he buy back.

Your next argument will then be his nominee is buying on his behalf, then what make you thinks that Eddie dispose is not his nominee pick up? I look at Eddie disposal pattern, quite a number of his shares is via off market whilst Dino is open market.

If the nominee is picking up the shares, it is very expensive to transact via open market as it involves transaction cost (both sides) and also the chance of the shares will be taken by others, thus losing the shares and increase the cost (need to buy back the loss shares at market price).

Zero sale of EDC is quite a normal scenario. I remembered it happened before when bank didn’t buy.

The interesting thing from the quarter result is this one… “The income from the electronic transaction processing segment decreased by approximately RM13.25 million mainly due to lower average value per transaction processed and the accrual and repayment of outstanding transaction settlement to an oversea online merchant amounted to RM9.16 million.”

Can the revenue insider team enlightened us how is it possible that the revenue from the electronic transaction is in negative? Isn’t the money received and payment to merchant should be matching one? Too busy leaking information and forgotten to close the accounts?

1cent view… now the pictures looks a bit clearer why the Ngs brother want to kick out the existing team and even the auditor during the AGM… the one and his side-kicks that manage the finance didn’t do a proper job and want to stop others to blow up the problem, because they are the biggest shareholders and at the 30sen as mentioned by the loyal employee… their wealth will diminish further. Dino sell more shares at higher price and buy back at lower price like an operator, I don’t believe they don’t have the financial information given that their trusted loyal insider employee have accessed to it?

Pirated dvd long time disappear from pasar malam lol… now got tv box…

Maybe Dino will build a super big movable tv box macam container and human live in it, then it really combined property and EV and software and phone altogether…

Since someone posted a new update, then must give face to read a-bit mah. And they compare Dino to Elon Musk and Bill gates, then must also follow US market and study a-bit on Tesla and Microsoft.

Maybe Dino is capable to build property that move using EV concept or turn credit card into mobile phone or implant software into our brain then we can ditch all those subscription/pirated version of software.

I need to OT because the kakak risk her life to share the info to me… so in return, i need to clean the toilets for her.

Thanks for sharing the info, i3lurker.

But if someone carry the thought that our market is a perfect market then it is a dangerous thought. Our market is an imperfect one.

How many owners of the listed company didn’t use proxy/nominee. Corporate board tussle is a totally different ball game. There is so many cases on board tussle that nothing can stop proxy/nominee/person acting in concert in succeeding and why SC and Bursa cannot nail down those syndicate or party acting in concert because it is not possible to pin point the relationship between the beneficiary owner and nominee/proxy.

Why I said i had the 2cent thought that Dino is cashing out and not as per what someone mention nominee is buying and holding behalf because if Dino really want to consolidate the shares, direct business transaction (off market) is the way to send a clear message to the market that he is still going up for the fight. The cost incurred via transaction through open market is so costly because it involved churning cost and also the loss of shares.

Another possible scenario is that he sold and tried to cause the share price to drop and collect more, this is a standard step to collect more shares and why he is doing so maybe is really due to their bank accounts frozen and they do not have enough cash to sapu the shares. And if it is really true that their CDS account frozen, then it make sense why when he disposed the price is dropping and when he is not disposing the price is on uptrend. So he indeed is trying to suppress the price to collect.

It is contradicting to say the share market is transparent and then nominees holding the shares. This itself is a slap on the face on the transparency. Nominees is used to mask the actual shareholding… nothing wrong as it is permitted by the rules.

My 2cent advice is, if you don’t know how corporate board tussle work, then don’t give misleading information, unless you are working hard to earn your pocket money. Brian and Dino need to get a better advisor to help them to win this war, not some cheap IR consultant which don’t have real battle scar.

My source (the kakak) told me…

Within the finance department, the aunty is the head of finance, the wife is finance manager, the cousin is finance manager (this one disclosed in the annual report)… so basically the whole family is in finance department… you help me i help you… what a good family…

Nothing wrong to sell high buy low as that is the way to make money in stock. But when a major shareholder do that in single day, he own self is shorting the counter through his own shares in open market.

So going back to the point increase shareholding, this is basically asking investors to take up your expensive shares and you buy at lower price, you are profiting or make use of the retail. And i don’t see Dino buying more shares than he sold. So that point don’t hold water at all.

The 2cent questions:
(1) Who is overseeing the Admin department?
(2) Who is overseeing the Operations department?
(3) Who is overseeing the Finance department?
(4) Who does the insider employees report to in Finance department?

The answer is the same person.

Isn’t that it just make it so simple that documents can be brought in and out of the company with the help of the insider employee? There is inside job happening in the company with these so called insider employee leaking info and also the claim that the entire finance team don’t like the new “evil” director? It is not hard to imagine that the entire finance/admin/operation department are part of the insider team and do whatever things like bring out or bring in boxes to help their boss.

All these staff report to the same boss and they allow the boss to control them like puppet because he pay their salary…

Talk is cheap… if there is wrong doing just report to the authority.

If Dino is Elon Musk or Steve Jobs, I will definitely support him to take the helm. But unfortunately, he is not.

Over the last 2 years, I didn’t see the company coming out with any good IT solutions. Lets not talk about rocket type of technology, even technology or solutions which is compatible to its peer GHL also don’t have. This is the problem that the company is facing and lacking behind… is it a business decision problem or technology issue?

I agreed it is a good thing to consolidate under one person and Dino sounds like a better and more prepared person than his brother Brian.

But the way they operating now is something that contravene common sense. If you still want to fight the board tussle, you should collect more shares and not lowering down. The golden rule is still who has more shares who will win, now you are letting go at least 23 million of shares, about 4.8%, why lowering down the shareholding and let the other side have a chance? Imagine the 4.8% is picked up by friendly parties to Eddie, then isn’t that now the impact is double? Only unprofessional advisor will keep asking people to look at Eddie and Brian/Dino shareholdings. You need to collect the shares quietly behind the scene to give you more upper hand to win, not doing it outright clear cut in broad daylight to let everyone know what you doing as it will push the price up.

Plus, buy and sell on the same day is sort of like a operator kind of thing, you sell high buy low indicate that you are trying to control the price to cash out.

Good summary… but just want to correct something at the start.

(1) Company suspended the 2 Directors
(2) 2 directors take out 30 boxes of “personal” stuff with the help of employees, with police report lodged
(3) Call for EGM
(4) Call for press conference and claims innocent and foul play
(5) Arrested by MACC
(6) Co confirm 2 directors arrested

If follow the resolutions, the previous articles only touch on and stop at resolution 9/10 only. I believe the next articles should be how good are the 3 proposed new directors and what they have done great for Kedah, Bank Muamalat and how great is the audit firm - Moore Stephen:

The move on to why need to cancel the cancel the authority to allot shares and share buy-back, only after that will move to diversify into property development, construction and property investment.

Actually the more all these employees and ex-employees shared the info in the public domain, they are putting the company and their colleague’s job at risk.

First, you are sharing information which belong to the company to third party and not the authority, you are not whistleblowing, you are breaching non-disclosure clause which I believe you have signed as part of your employment letter. I don’t think you will be under the protection of whistle blower. As ex-employee, it can consider a infringement of company’s asset. I believe there are consequences if the proper protection is not sought.

Second, those that are not involved in these leaking of info, their jobs and reputation will be at risk as the company may view everyone has a hand in leaking the info and the company will rather stop the leakage by removing everyone, a fight between the 3 Ngs now become a fight where ordinary people has nothing to do with this get dragged in because of a few employees and ex-employees trying to serve their bosses.

Third, it was first mentioned the 30 boxes are all personal stuff and police report made and press conference called claiming the same, and now with all these info leaked and with claims the 30 boxes are all the evidence, there is this false info given to the public initially. Doing a wrong thing to solve another wrong thing doesn’t make you the right person. You claimed Brian and Dino took away the evidence, my question will then be how will the company complete the audit if the documents are not in the office, audit can issue a negative opinion and this will lead the company to be PN17, so now who is really destroying the company?

Whilst we enjoy the drama from the sideline, the reality is that lots of people livelihood and reputation and daily routine are being affected because a few self-proclaims righteous employees and ex-employees trying to help their bosses and never think about the consequences that will bring to the company and the people depend on the company. Nothing wrong as they are your pay master but it is a selfish thing to do.

Whilst it is prejudice to comment on the ongoing MACC investigations on the thermal paper, but until today the real questions have not been answered. The whole episode now is nothing more than slandering and characters assassination, which is quite normal in board tussle to shape public opinion. But the real storyline will always follow with the authority like the police and MACC investigations, not those claims based on source, based on employees.

If there is really proof of wrongdoings, just make the police report, otherwise, this is just like a drama, scandal, gossip which serve no purpose. And if it is true that police report have been made, I would suggest to stop sharing them as whatever being shared on public domain now is prejudice. This explain why there is not much info coming from the company despite all those news reported, press conference and negativity posts. If the things is real, there is no need to go out loud.

With the so-called 30 boxes evidence plus insiders/employees help, why don’t go make a police report?

I recall in the press conference that Brian and Dino gave, Brian personally mentioned that he went to make police report to move his “personal” stuff out… so now that is contradictory, did he make a false police report or he is misleading the public during the press conference.

Last i check… the directors that had intention to deal is… Leong Seng Wui, Lai Wai Keat… and… and… deng deng deng… Ng Shih Chiow and Ng Shih Fang… whoops….

Popcorn question… so no one can confirm whether the thermal paper allegation is real or not, but can the “employee” confirm there is at least toilet paper provided?

My 1cent view… it is interesting to see the director saying the company need a better corporate governance when in fact, the same director is holding multiple functions within the company.

Perhaps SC should set a rule that director cannot hold any role within the company, do not handle finance, do not handle operations, do not handle administration, do not handle IT, do not handle business.

You can get the king, the judge, batman, superman, wonder woman, the priest, the nun and the monk to sit in the board, but when you have unchecked power in the day to day affair, this is where potential corporate governance lapses will creep in.

The winning formula is who has more shares then who will be the boss… simple as that.

But life without drama is boring… so my popcorn questions is… the allegation that the paper is real or not? And who is actually driving the car? Can any kind hearted soul give us these “insiders” info?

I dont think Ghl is handling the tng wallet into china, most likely it is under alipay network as tng is a sister company of alipay.

One bring Alipay into local, another bring local to Alipay in China…

https://www.theedgemarkets.com/article/ghl-partners-alipay-enable-travellers-pay-mobile-ewallets

https://www.theedgemarkets.com/article/touch-n-go-ewallet-expand-mainland-china-collaboration-alipay

My 1cent view:

If the companies is still at growing stage, make sense to reinvest the profit into the company to better utilise the resources and don’t pay dividend for the time being. But if the company is directing the resources from growing the company, then it does not justify why the company shouldn’t pay out dividend.

I remember seeing the company announcing that it has invested more than 5% (about RM8mil) of their money in quoted shares, unless such investment can bring in benefits to the company like contracts, collaboration, or super high capital gain or high dividend payout, otherwise it looks odd to use the company money to invest in other quoted shares instead of doing capital expenditure or R&D.

There is quite a number of payment companies out there. Over the last 2 years, a lot of fintech companies have mushroomed and they are not just limited to doing payment, they encompass quite a lot of things from ordering system to QR menu to loyalty points (like what Ren is doing).

The key is whether Revenue is able to keep innovate themselves and bring the new things fast to the market. Over the last 2 years i haven’t really see them coming out with things that is good and problem solving or something that can give a knee jerking reaction to the market. The wanna ewallet is taking ages to work and lots of established and newbie on the blocks ewallet already moving ahead.

When the playing field start to open up and the bar is getting easier to enter, innovation is key. And money need to spend on the right places.

Business and corporate are two separate things but it can be do or doom if the management do not know how to manage them coherently. Need to walk the talk and not talk the talk.

(7) Another school of thought put forward by supporter of dividend is that the share buyback typically will benefit the corporate and insiders, but not the general investors. It will provide short term price push for insiders to cash out or using company resources to meet financial target.

Bottomline is, the company is supposed to focus on growing the company and let the shareholders decide how themselves how they want to invest their money.

Credit: articles on Dividend .com, investopedia, seeking alpha.

(4) consolidate share holding. Share buyback will not have voting rights so in a way, the percentage hold in the company will be increase without the need of the shareholders to fork out money.

(5) Can be a prevention tool to defend any hostile takeover.

(6) Without the need for the company to commit to any form of yearly dividend policy

My 1cent worth of view:

(1) Public outstanding shares reduce (supply reduce), can help to serve as a support level for price, but depending on the market force, may or may not be able to support the share price. Topglove is an example that when global economy/market down, it can’t beat the market, also instead of using the cash to pay out dividend, now the vast amount of cash is stuck at a stock that is value lesser. Stock that is in a sector that is highly influence by global stock rally, it can be both an opportunity or risk so the pricing judgement (how much the company share price worth is highly judgemental) need to be managed properly. But generally, the management have first hand info on the business, hence if an upcoming project is going to launch or sign, they will know beforehand.

(2) Company cash reduce. If the company has excess cash and is not needed for expansion, subject to market factor, can be a good thing. If the company do share buyback but need cash to expand, then will need to raise fund, unless it is through rights issue, otherwise private placement (normally with discount) will dilute shareholders. Generally will limit dividend payout but can use treasury share to issue dividend share, however, it is not realistic for a company to use treasury shares to give dividend as the cost is higher, means share price RM0.90 vs a value RM0.01, unless the counter is trading at RM0.01 and then declare RM0.01 dividend

(3) I think the share from buyback will be excluded from EPS calculation. So in a way, the EPS will be higher and the PE ratio will be lower, so the ratio will looks good. But if someone using EPS/PE ratio to invest in a counter, that ratio will not be reflective so it can distort an analysis. Example, earnings is RM500k and number of shares is 500k unit, EPS = RM1. If earnings did not grow but share buyback 100k units, the EPS will be RM500k divided by 400k shares = RM1.25, ratio increase but basic earnings did not.

It will be interesting to see what is the justification that the management will give instead of those textbook answer to enjoy the capital appreciation, reward the shareholders, participate in future growth etc.

At the very beginning, there is no hurry to issue the warrant B, because there is still a big chunk of warrants A out there. So this will affect how many shares that the warrants B can issue. Is a 1 to 6 bonus issue good for shareholders? It is better than nothing. But if you wait for the warrants A to convert or expire, you can issue 1:2 or at a lower ratio compare to 1:6, isn’t that the better deal for all shareholders?

Today warrants A price is being suppress, it will probably touch the zero premium/discount range. If you can get 1 mother shares at RM0.915, why want to spend more money to convert at RM0.975 (RM0.75+RM0.225)? So the chance to convert warrants A now is very low. Majority of warrants A holder is likely to have a higher entry price at RM0.30 and above, so the total price will be more than the market price of mother share now.

Unless subsequently the exercise price of warrants B is to price at a premium to the market price, then it will make it worthwhile to get cheaper warrants A shares now. But no one will know what is the exercise price except the management.

Dividend reinvestment plan is a good one. Another option is bonus issue with capitalisation of profit if they want to conserve cash. But the best reward is still deliver the result, with that the price will follow.

The warrants A still got about 1+ year to go, and still have outstanding 150millions yet to convert and majority of the warrants A still in the hand of the founders, except the MD which sold most of his warrants.

If really want to reward the minority shareholders and need cash to grow the company, they should convert the warrant A, increase the base, and free up more shares then can give like 1 to 1 or 1 to 2 or 1 to 3. Both the maximum and minimum scenario now give out lower Warrants B. Worse than warrant A.

The exercise price of RM0.90 is only RM0.15 higher than warrants A. So this will affect warrants A price now because many people have invested during the high price. Warrants B is giving out as free. Maybe minority shareholder during the shareholder meeting should questions the board on what basis they think this is in the best interest for the warrants A holder.

The MD mentioned in the video that we need to understand why banks want to place a credit card machine at the merchants, because of the cashflow, and then they be able build a close loop eco-system and money will flow within...

To me it sounds a-bit of contradicting, that means after getting Digital bank, they will potentially be direct competitor to their existing banks like public bank, hong leong bank... they will be competing with them over the same merchants from bank perspective and they might also risk losing public bank and hong leong not using their terminals... might be a risk to their existing terminal business...

QR should be out on Monday.

Just checked the announcement that the directors did share transaction on the 30 April and they did not announced it under closed period, so there will be a 1 month timeframe (i think the rules is 30 days before the announcement).

My bad, have to adjust the share price back to pre-bonus. Assume RM1.25, it will translate to approx RM2.08 (RM1.25/3x5). So the PE is about 65x.

If you want to use PE as a metric, you have to take into consideration of the bonus issue of shares effect. They issue a bonus shares in end 2019, so that itself shoot up the PE.

Before bonus issue, their number of shares is about 233.652 million. Using PAT of RM7.511 million, the EPS (before bonus issue) is about 3.2 sen. So based on share price of RM1.25, the PE is about 39x.

As expected, their transaction income dropped but is good to see they still manage to clock in transaction income.

Based on their last quarter rental income of RM5.7 million, and assumed there is no change, that means they sell closed to RM10.4 million of terminals. So this quarter they are selling about 10k terminals. This one is a bit surprising as I thought during MCO there is not much merchants opened. But last quarter they only sell like RM4.3 million, estimated around 4k terminals, so may be is a follow through purchase. But this will help to push up next quarter rental income by another RM100k per month.

The share of Non-controlling interest is so high, most likely is their subsi that do the mobile top up one that is very profitable, during MCO all use mobile phone... looks like a very good buy now.

But surprisingly with such a low profit, their tax expenses is so high. Maybe they are buffering for full year audit impairment.

One very interesting thing that was disclosed in the quarter result, they bought an e-wallet company called Scanpay Sdn Bhd, looks like they are going into e-wallet game, now it make some sense why they buy Wannatalk, use their facial recognition to register user just like how Grab did, move your head, turn left, turn right... and then roll out facial recognition payment through the wallet.

Overall result is acceptable, 2 quarters affected by covid-19, but still manage to do close to last year. If without Covid, i think this year they can achieve RM12mil PAT.

Side note: Looks like GHL chop wannatalk services, logo no longer there. Lol

Their transaction processing should be affected. Last quarter due to the lockdown in China, alipay and unionpay and their taobao should be badly affected. But they have mydebit, tng, boost which still contributing up to 3 months. So the impact is not so bad.

This 4th quarter, MCO lockdown 2 months (April/May), their Mydebit/tng/boost should be badly affected as alot of merchants are closed during MCO. And alipay/unionpay not recover, and i think taobao may not be fully recover back to the normal trend.

If this quarter they can remain in the black is considered good. But if in the red, kind of not surprising.

The Special Issue is to comply with the Bumi equity, it looks like this round is also not fully taken up. May be will need to go for another round.

The timing that they can go mainboard, most likely will have wait until after October 2020 when they have completed the audit. But looking at the current economic situation, it may not be feasible for them to go mainboard as this year profit may be low due to the pandemic. MCO kicks in from late March onwards, so transaction will be affected for at least 2 months till May.

RM5million for 40% at a valuation of RM12.5million. Total profit guarantee of RM800k, that means it is at PE 15.6x. The mechanism of this acquisition is quite similar to their previous acquisition of Anypay and Buymall. But PE is almost double.

Read from The Star, they mention the acquisition will allow them to embark on biometric payment technology, seems like they are going into some sort of facial payment using wannatalk technology. Don’t really see how this will work out in Malaysia, using their terminal to scan consumer’s face? Place your thumb print on terminal like those immigration gantry? Or do something like Greenpacket’s thermal scanning and then use it to capture facial recognition. Greenpacket is using USD10mil to buy a e-kyc company (1.5x to revenue), if wannatalk technology can also be used to do e-kyc, then that may help their business case and this may be a good catch. But still, the biometric payment is like a long shot.

Found something interesting from their website, Aeon credit, takaful, shell, caltex, TM, quaker, MSIG, pepsico are its customers, so may be that will open the door to Revenue on payment side. But the biggest name on their website... GHL is also their customer! Looks like they will lose GHL as their customer after this. Will be interesting to see how this turn out.

Wow... shopmyairports is using Revenue payment gateway. Too bad right now the borders are closed and domestic travel is limited, hopefully when the borders open it will be good for their transaction processing income.

If not mistaken, I remember seeing NSK is using their terminals, Dragon-i, some pharmacy chains are also using their terminals as well, and the clinic that i went also using their terminal.

Their logo is not so visible as they stick them to the side, rather than on top of the terminal, which the top part sticker show banks like hong leong bank, public bank sticker.

I have no idea what website you read, I get my info from their website, particularly their IR section when they post their quarterly result and presentation and they provide update.

The fund raising is in relation to the Special Issue that they undertake few months back, which is to comply with the requirement to have 12.5% of equity interest to be held by Bumi investors. I believe this comes because they have met the main market condition and need to work on this. According to the Special Issue, they supposed to issue about 45 million shares, I think they have done one round during MCO, and only managed to get like 400k or 500k shares. So this one is the follow up round.

Depending how many subscribed to the balance 44.5 million shares, the number of shares will increase accordingly and EPS will be diluted. Subject to how soon or how well they use the money raised to generate profits (mainly buy EDC terminals and also to enhance and develop system – issuer technologies). In the short term, the PE will be increase, but if they spend the money well and generate income, that will help to improve on the EPS. Likewise, if they not able to generate profit fast, then the dilution will continue and PE will continue to trend at higher level.

Depending what type of investor you are and what is your investment strategy.

Trader may not enter right now as there are other counters with more volatility. Long term investor and if they see there is still potential in the company, may enter when the price is reasonable to he/she (add/average).

Make sure you study all the information available to make an informed decision.

Everyone is free to comment on a public forum, but it should be done on a more factual basis. Otherwise, it is like bad mouthing (which I was previously being roundly sounded for “bad-mouthing” GHL for making a comparison).

As explained in my earlier comment/analysis (my 2-cents word), if not because of the new businesses (or in someone interpretation, buying profits), 3Q2020, Revenue would be in the red. A lot of listed company pursue inorganic growth to grow the company, this is part of the corporate world game. GHL took over Paysys with profit guarantee as well, so does that mean they shouldn’t? Of course we have to look into the businesses (profits) they buying whether it benefits the company. Anypay and Buymall acquisition provide them access to the consumer, which Revenue doesn’t have, in a way, this is a downstream acquisition of their value chain (please read their IR material as they have provided information on both companies before).

On the comment that they should focus on taking care / building their existing business. Definitely! But if they had not bought the profit… this quarter will be bad. You can’t have the best of both world when you asking them to grow the existing business but everyone duduk at rumah. So I would love to find out how best they can grow their existing business during this MCO/Covid-19, so that they can make more profit, especially from staff who have worked in the company before.

Using company money to drink is bad (And I hope they do practice social distancing). But some missing information and further clarification is needed, did they just purely go drinking? Drink at night club with pretty girls? Are you one of them that go drinking and witness what is really happening there? Or they having business meeting over drinking? Did they bring in new business? All this missing information is rather vague and it is hard to judge. I can’t deny the fact that a lot of companies get sales / business via drinking / happy hour. This is what we called 关系.

For the record, it is kenanga growth fund that is disposing, and not CIMB. If you understand kenanga growth fund, their investment in the stock market may have been badly affected and they need to close their position through liquidating those stock that have profits. At last check, their shareholding has dropped by 1% (still have 29million shares) and not a drastic disposal / exit. When you see them reached less than 5% then may be it is a sign of alarm and will need to know who is the taker. Short term definitely it is facing a strong headwind, especially in 4Q2020. Mid to long term, depending on what are they doing during this covid/MCO which will affect their 2021 prospect.

I understand that they have a huge inventory, but have you consider whether the supply chain have back to normal? It looks bad if it is not moving, but it may be a bonus if they have the stock when the supply chain is still down. It is a-bit contradictory with the earlier comment that they should focus on existing business, which is in the terminals business, and at the same time saying they will go bankrupt because of having a lot of terminals. Without the terminal, how to grow the existing business? Definitely right now they can’t deploy much but that doesn’t mean in the following quarters they can’t.

Again, there is a lot of missing information, particularly on the business prospect, which not many is privy to it. Perhaps this is the scenario that someone who is not in the inner circle of their senior management and only providing their own story, unless you are the right hand man or part of the senior management, otherwise, I don’t think many people will know what the top level strategy is.

P/s: My colleague don't even tell me where and who they meet, let alone the boss of the company.

From my 2 cents of words…

From the 3Q announcement, their core business is badly affected by the covid-19, especially from their transaction processing (almost drop by half). If exclude their digital payment and logistic business (in 2019 these two businesses are not in) of RM1.84mil, their revenue is about RM13.7mil, compared to RM15.5 in 3Q2019), a drop of RM1.8mil. In fact, if we remove the contribution from the two new businesses (RM1.84mil – RM0.62mil x 76% = RM0.93mil), they are in the red already. So their result in Q3 is saved by the two new businesses.

Their bad result is not entirely surprising, at least to me.

One of their key merchants is Taobao, I remember Taobao sale in 3Q is typically lower because of the CNY where China is on a long, like 10 days holidays. But the Covid-19 has brought China into a lockdown mode since Jan 2020, making the shipment even tougher to reach Malaysia, so the sales from Taobao definitely will be severely affected. Also they have oversea card like Alipay wallet, uniopay, which most likely will be close to zero in the month of February and March because of the lockdown.

Malaysia start to take the Covid-19 seriously in Feb (Revenue had mentioned something in Q2 result where the malls are seeing a drop in shoppers since Feb), so most likely their local transaction is affected from Feb onwards. Revenue doesn’t have a strong presence in the local e-com space, except Lazada (and they only process banking account and not credit card), so their transaction is heavily rely on those physical merchant which used their terminals, so even when TnG and Boost are seeing a lot of usage, most likely Revenue doesn’t get much from it. (I can transfer the money within TnG app, so I don’t see Revenue benefited from it during Covid when businesses were closed during MCO).

Their terminal rental income should be quite intact in 3Q2020 (as MCO only started on the 18 March and they have completed the full 3 months). Based on their 2Q2020 IR presentation, with a revenue of RM5.11mil (assume with a 10% growth of RM5.5mil), that means their sale is drop by half to RM4.4mil. This sounds reasonable as from Feb onwards, there should be lower sale since they may have loss 1 to 1.5 months of time to deploy the terminal.

In my opinion (3-cents word), 4Q2020, rental income should be still quite intact (April and May all dudukrumah, so business still have to pay rental), but June / July once MCO uplifted, then maybe will see there will be provision to be made. Sale of EDC may not be high due to MCO in April / May or potentially June as well. Transaction income should continue to be badly affected as explained above. So 4Q2020 may be worse, if nothing concrete has developed during the MCO.

This is not a buy / sell call. The view express is mine and for sharing / discussion purpose only.

Confident and arrogant are two different things. The only common ground is whether research or homework have been done. I have already done mine and thats the reason why I gave and stick to the comments that I have made.

I’m more than happy if you can debunk or rebute my analysis/comment on facts and I will strongly support those corroborated facts.

If those Ghl supporter feel offended because of my 2cents worth of analysis, I can’t do much except apologise for my unprofessional comments/analysis.

Not belittling advise: all shares will fly. I believe it WILL.

Ghl listed way before Revenue, they started off on terminal business. But the current management hostile the founder of ghl using epay.

No doubt, ghl is the veteran. But they have been listed like donkey years, but market cap, at peak is 1.2bil. Look at Revenue, less than 2 years listing, market cap shot to 500mil. They have attracted best fund like kenanga to take up substantial stake. This is a testament to Revenue management. If ghl is really so good, why dont kenanga invest in them?

For those who buy into ghl regional play, please... please try to understand from a costing perspective. They need to set up overseas presence, which come at a cost and squeeze on margin. As highlighted last time, ghl operates verifone, ingenico and pax (after Revenue introduce the first all-in-one, which cater to card and e-wallet), what will be the cost to operate 3 different platform? My banker friends told me, the explanation given by ghl why they havent roll out the so-called all-in-one because they try not to burden the banks. They find it a BS explanation. Ghl sell to bank or rent to bank? If sell, make sense. But apparently, this is not the case. They are funding the terminal of those tier3-4 merchants. They need to have huge capex to replace their terminals, thats why they are so slow in rolling out, whilst Revenue has already roll out in 2018.

So what ghl has Rm100 mil of cash, if im a investor, i would have shot them left right center back on why keeping the cash and not utilising it. Dont pay dividend, dont utilise the cash, im also lost and speechless what is their strategy.

Anyway, that is their own problem. So far Revenue has given me a 500% return, i buy into their strategy and i have strong faith in Revenue management.

Talk/comment as if you know the payment industry like a guru... ghl short live show is just a timing of their announcement. Try to get yourself equiped with the knowledge of tokenisation. Speak to industry player on that and you will know Revenue will be able to do exactly the samething. Revenue is not about hype but solid strategy. This is somethint ghl can’t rival.

I still stick to the comment that ghl follow the blueprint of Revenue. What makes you think that, being the first in the market give ghl the advantage? What makes you think that Revenue can’t do exactly the samething? Ask ghl about their deals with visa/master, will banks see them as a friendly party or hostile entity. By the way, where is their so-called all in one terminal? Not the e-wallet all in one ya. Also, what is the status of Bestinet vs Ghl? They have a strong case on the RM3++ mil?

Revenue had been consistently taking care of the investor. At today price, they are still hovering close to RM2.28 (pre-bonus issue of high close to RM2.30), whilst ghl can’t reach its peak of RM1.80.

My banker friends told me that next week Revenue has some collaboration. Not too sure whether there will be any announcement but they are positive with the development.

The margin of safety of GHL is at RM1.30, the price Apis paid:

GHL has no margin of safety. High 1.80 and not sure when it will reached that again. Even at 1.60 it is a RM0.20 loss.

Whilst those who buy Revenue at 2.30 before ex-date, based on today pricing, already trending higher price and making profits.

The promoter want a 500 follower only willing to share his “trade secret”. I have wasted a good 20mins on... “hi... how you doing...” “I’m doing a more frequent live than my usual live blog.” In then end, no subtance.

I have nothing against someone trying to make a living, but you have to be honest and give an impartial view.

Sailang? Not yet and don’t need to. Im still holding on to my 0.37 stock.

I just do not wish to see the retail investor being mislead by people who had no clue about good counter.

For example, it is not the CFO that sold his share, it is the Independent Director exited. Again, just prove how some retail investor doesn’t do their homework.

To summarise GHL and Revenue... the management in GHL know nuts whilst Revenue think 2-3 steps ahead of GHL. I seriously don’t understand why actis and apis want to stick with a no brainer company. They should ditch GHL and work with Revenue. Whatever actis and apis have in store, only Revenue can help then to double or triple their existing business/portfolio.