Gloves counters drop and drag down everything today.. buoyed by the vaccine sentiments.. My frank advise. avoid C19 related counters at this moment. The stake is too high.. Focus on IT related industry including Appasia.
There is no big announcement. You need to wait for next QR results. Their audit confirmation ware is being used and results will only come in once implemented. At current prices, it is a buy but because institutional players are already bought in, now only retail small fry are trading among themselves.
No need to panic. PMB averaged EP over 70c. They are investing for capital gains and cannot be for dividend returns so price will surely strengthen back as they probably have information of some fresh developments in the pipeline
Looking at the price these few days, one can only assume that the funds are not in the market or have bought enough. Only retailers are in the market like small fry grabbing small morsels of meat. But if you are investing for the long term (or mid-term profit-taker), you have to know how to separate the wheat from the chaff. This I reason out through these:
1) Appasia's audit-confirmation is used by top audit firms in the country and major banks. 2) Each use is RM15 per successful confirmation - how many transactions are done in day multiplied by a five-day business day week? 3) There is no competitor to Appasia in Malaysia for this electronic banking confirmation and they are the industry leader of this innovation 4) Agreement with MIA lasts 12 years - this is a monopoly and guarantee of a fixed income flow while they explore other products of similar nature (companies innovate based on their field of expertise) 5) They will surely explore regional markets like Singapore, ASEAN, and even evolve further. AppAsia is only the second company in the world which has a viable and commercially acceptable industry-wide electronic bank confirmation platform for auditors, according to the news below:
6) Current results are showing in the positive for this quarter. If you are an investor, you will know that with the roll-out, it can only get better - assuming the company does not invest in less profitable ventures for the next three months.
@bowman agreed except point no2, audit confirmations only been used once a year for one bank account, that's still alot, according to NST will contribute 20X of current profit, so next QR profit is estimated around 20k x 20 = 400k
not to mention also below expansion possibilities 1. only maybank and rhb major banks are in, how about when HLB, PBB, CIMB, BIMB join in? it is big possibility since this econfirm.my is monopoly business 2. expansion to countries around SEA, like vietnam, indonesia, thai
@JXnotJAX - thank you for pointing out item No 2. I thought it was done on regular basis, recurrently.
It is understood that Rakuten's recent purchase of AppAsia shares' had to do with expanding eConfirm.my platform to Singapore, the Phillipines, Thailand and Vietnam. If this is true, then this is one recurrent contributor to Appasia's regular earnings, sentiments aside.
bowman @JXnotJAX agreed except point no2, audit confirmations only been used once a year for one bank account, that's still alot, according to NST will contribute 20X of current profit, so next QR profit is estimated around 20k x 20 = 400k
This quarter profit jumped to 118% from last at 73%. That's 45% increase with the current few banks joining. The system was launched in July but I believe it was used much earlier, maybe in June?
"eConfirm.my is targeted to be eventually used by all the auditors and banks operating in Malaysia to process the annual bank audit confirmations for 1.3 million companies as registered with Companies Commission of Malaysia (“CCM”) as on 31st Dec 2019. The Platform charges only RM15 per successful confirmation."
Even is it is 1million companies, that means a recurring income of 15million alone for Malaysia (and growing), contributed by this platform alone in Malaysia. Not mentioning its other products, or collaborations abroad.
bowman, listed companies usually has 50 above accounts, if 1 mil it's gonna be 75mil revenue a year, considering the big profit margin of econfirm, must be crazy
I only know the simple facts - multiplied, they are already a huge sum. Used in countries like Singapore, whose transactions are easily10x Malaysia, it is a formidable piece of product. It's among the two in the world. Certainly the first being used in this region. So this stock is for the long term investing. You could call it consumer goods if you like.
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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....
oopstikus
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Posted by oopstikus > 2020-08-25 09:17 | Report Abuse
there is an opportunity to buy when others sell base on latest quarter result.