My view point
on Managepay System Berhad (MPAY)
MPAY is an
ACE market board or called second board. ACE company revenue very small compare
to Main Board company and deviation on revenue and profit performance sometime
is unbelievable can fly to space in one second vice versa for bad management
company. Actually I’m scaring on this kind of company. But still have a lot of
good company with good performance and fast growth few years after moving to
Main Board. MPAY is listed on ACE since 2011, founder is a younger guy and he
is still holding the main post since listed. Checked back the Annual report
(Y2012 ~ Y2016) let me feel uncomfortable as told scaring ACE company. Please
bear in mind when read Annual report minimum 5 years back for especially ACE
company as well new listed company. They are sometime playing on book keeping
this why MPAY let me feel uncomfortable, 1st three years good
performance revenue keep increasing but following years (Y2015 & Y2016) is
lost even Y2017 Q1 QoQ & YoY. I wonder the company why keep losing but is
NET CASH company and normally NET CASH company even lost will pay dividen but
not MPAY found they did two times private placement and one times exercise
warrant. The founder Chew Chee Seng acquired of 28 million shares on September
last year, he expected the company will have good performance after launching
Mpay wallet I guess.
MPAY is Fintech
company main core business e-Commerce like Credit card Pin & Pay, Pay wave
etc. Listed company in Fintech field is very little. BNM license to carry money services business and
she subsidiary company was pointed in eCommerce project called Malaysia
National eCommerce Strategic Roadmap and they launched a MP@Y wallet like
Alipay, we chat pay etc. Last year MPAY granted another license called Peer to Pear
financing platform operator license meant everyone can be a finance institute
lending money to any party via MPAY platform and gain interest. Total 6 license
was granted and MPAY is the only listed company.
Advantages
1.
Company is on same track to National
eCommerce Strategic roadmap
2.
Company business (Fintech) are
current decade trend have bright future
3.
Company are the member in project of
National eCommerce Strategic roadmap opportunity better than others.
4.
MPAY is the only company that benefit
to us on eCommerce trend business because it is listed.
5.
P2P lending license on hand, Pioneer
company.
Disadvatages
1.
Can MPay wallet competition to gaint
companies like Samsung pay , Maybank pay etc.?
2.
Can Fintech to be diffused in
Malaysia? How long to take… 1 years , 2 years or more ?
3.
If National eCommerce & Fintech
system fail as well MPAY.
4.
How market confident with Malaysia
cybersecurity system will be affected to MPAY performance.
Conclusion
For long term MPAY may explode few hundred
percent up in revenue in once if Fintech can be diffused in Malaysia but may
need waiting at least 1 to 2 years as eCommerce ecology yet built. For Short term as today price 0.28 few
resistances to be broken in order to break the historical high, gain lever very
little.
ykbeh 23/7/2017
