This counter has tested above 0.5 - 0.6 numerous times. of course, it has also gone down to 0.3 before...if you buy with cash and hold long enough...should be ok
THE goods and services tax (GST) software system will continue to contribute to accounting software company Censof Holdings Bhd’s business growth as it expands its reach.
“We are extending our focus and targeting local councils for SAGA (Standard Accounting for Government Agencies) related projects and also continue with our regional expansion plans. “Our Indonesian business, PT Prasindo, where we are offering wealth management services, has been growing steadily with a number of new clients secured recently includingthe National Higher Education Fund Corp and Jambatan Kedua Sdn Bhd,” group managing director Ameer Shaik Mydin tells StarBizWeek.
The group is making good progress on this front. To date, the accounting solutions providers have secured 22 government agencies for the implementation of the GST and to upgrade services.
Ameer, however, notes that the government agencies that are generating income from tax sources are not required to implement GST, for example, the Inland Revenue Board (IRB).
“The average once-off fee for system upgrade and implementation ranges from RM100,000 to RM250,000 per contract. In addition there is also consultancy fees which depends on the scope of work of the project,” he discloses.
Analysts say there are a lot of opportunities for Censof and that the implementation of the GST of 6% effective April 1, will boost its revenue.
Censof is one of the major accounting solutions providers for government agencies. It boasts of clients like the IRB, the Finance Ministry, Kuala Lumpur City Hall, Malaysian Palm Oil Board and the Social Security Organisation.
For the first months ended Sept 30, 2014, Censof’s profit stood at RM1.17mil on revenue of RM64.1mil.
Ameer said its government and private client portfolio is at a 90:10 ratio under its financial management software solutions (FMSS) business.
“We have existing projects with Kontena Nasional and Northport under our FMSS business and we are looking to expand. On a group level, its standing at 50:50. The clients of our other subsidiaries comprise mostly from the private sector,” he explains.
Some analysts estimate that the GST-compliant software market is potentially worth about RM1.7bil. Among the public listed companies that could benefit from this market include Censof.
According to Customs Department director of GST Datuk Subromaniam Tholasy, 316,001 companies and businesses have registered for GST as of Feb 16.
As of Jan 31, Ameer points out that its GST software system orderbook stands at RM2.25mil. Censof order book stands at RM45.4mil as of end-December 2014.
Some experts point out that some SME’s are paying almost double for their GST-compliant accounting softwares. The high prices have resulted in some vendors enjoying brisk sales from last-minute demand for GST compliant software.
Ameer says Censof entered into a joint venture agreement with Asian Business Software Solutions Sdn Bhd to sell MYOB, a GST compliant accounting software for small and medium-sized enterprises (SMEs).
“The retail price for the MYOB software off the shelf is RM1,699. However, we are selling it at RM1,000 per licence which can be offset against the Government subsidy of RM1,000 issued by SME Corp when SME entities register for GST by Feb 28.
“With the new registration deadline imposed by the Government, we are expecting an increased demand for MYOB since all GST registered companies will need to ensure that they are fully-compliant,” Ameer says.
Ameer points out that Dagang Nexchange Bhd (DNex) has delivered a steady gain to the group since its acquisition. “DNex cumulative profits for the two quarters ending Sept 30 has already contributed RM8.1mil to the group’s bottom-line,” he says.
Censof had forked out RM69.8mil for the acquisition in a tender process called by Khazanah Nasional Bhd last year.
placement price @0.40/share..only those impatient sellers wanna cash out quickly..Censof backed by government link project, furthermore, DNEX price still stable..
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....
jl88
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Posted by jl88 > 2015-04-28 13:49 | Report Abuse
market sentiment issue..depend ur decision..