GHL earnings to be driven by e-payment solution enrolment Friday, January 10th, 2020 at , Business | News
The company will be the 1st payment provider to offer the service in South-East Asia where over 2,000 online merchants through eGHL will enjoy the benefit
by SHAZNI ONG / pic by TMR FILE PIX
GHL Systems Bhd’s move to enrol the first tokenised e-payment solution for merchants in South-East Asia is expected to provide an earnings boost for its transaction payment acquisition (TPA) business.
BIMB Securities Sdn Bhd analyst Afifah Abdul Malek said the move would restore user confidence to transact through online and in-apps (eWallet).
GHL will be the first payment provider to offer the service in South-East Asia where over 2,000 online merchants through GHL ePayments Sdn Bhd (eGHL) will enjoy the benefit.
“We like GHL, given its ongoing effort to provide better service and value-added services to meet merchants and users’ needs, as well as on track with the evolving cashless payment technology,” Afifah told The Malaysian Reserve yesterday.
On Tuesday, GHL announced its financial technology arm, eGHL, in partnership with Mastercard, will roll out Mastercard Digital Enablement Service (MDES) for Merchants, or M4M.
The M4M is a tokenised e-payment solution that offers a simpler, more secure and seamless digital payment experience for consumers and online and in-app transactions.
eGHL stated that it will be the first payment service provider in South-East Asia to enable MDES for Merchants in Malaysia starting this month.
The company noted that the integration of the technology is timely as consumers are increasingly storing card details online or in-app to make purchases with related merchants.
M4M replaces and protects a user’s card information and sensitive account numbers with a digital token that is unique to only the consumer and the merchant.
Afifah expects more projects coming from the GHL-Mastercard partnership.
“We have a ‘Buy’ call on GHL with a target price of RM1.80. We like GHL given the promising long-term strength of its TPA business and continuous support from government across its key markets (the Philippines and Thailand) for cashless payment,” Afifah added.
GHL’s share price reacted positively to new project announcements. Its share price closed 2.55% or four sen higher at RM1.61 yesterday, valuing the company at RM1.21 billion.
Meanwhile, Afifah said the contribution from the RON95 subsidy project is insignificant to GHL as it amounts to around 8% of its total revenue and the system is already in place.
“Through the awarded project, GHL has been acknowledged by the government and has proved its capability as a local player to implement the project.
“The ministry noted the reason for the delay is due to government needing more time to provide further clarification to the public on subsidy programme and to handle registration for eligible recipients from the M40 (middle 40% income group),” she said.
Last month, the petrol subsidy programme (PSP), scheduled for implementation this month initially, was postponed to a later date following a Cabinet meeting on Dec 18 last year.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the postponement is due to the need for elaboration and clarity in order to provide better understanding and prepare consumers for the PSP implementation.
First announced on Oct 7, the government had allocated RM2.4 billion for the programme in Budget 2020. It is expected to benefit as many as eight million individuals from the bottom 40% and M40 household groups.
Yu_and_Mee : pang72 sold off? he scream to say how good this counter then say crash and keep cash afterward. so never trust anyone in this forum 14/01/2020 3:34 PM
Yu and Mee : Most probably he would have sold off, and taken some profit... CNY need money, most people do.
GHLSYS is a good counter, but has gone up too high, much higher than its competitor, that's why some people choose to take profit in view of CNY.
Next week closer to CNY, more people will take profit, and after CNY, price should be more stabalised.
Investor take profit, but the engines just start heating during CNY where the ETP volumn sure will be very high... Eat, travel, spend, catch e Angpow...
GHLsys & Revenue like Petronas & shell, just grab both if you got money, some people like petronas, some people like shell, when the traffic is high, both will be benefitted.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
MingGoon
1,774 posts
Posted by MingGoon > 2020-01-13 11:17 | Report Abuse
GHL System : Each Quarter has been making profit...
Coming due to be release Qtr in Feb 2020 , significantly increase in net profit