Orion IXL share price up 5.9%


KUALA LUMPUR: Orion IXL Bhd ’s shares rose 5.9% to close at 18 sen after CGS-CIMB Research initiated a coverage with an “add” recommendation.

The financial technology and business solutions provider was the fifth most active counter with over 71.5 million shares changing hands.

Orion-WA gained 10.5%, or one sen to 10.5 sen with 20.36 million shares traded.

“We initiate coverage on Orion with an ‘add’ rating and target price of 33 sen in view of the earnings growth potential from its new fintech business,” CIMB said.

Orion provides computerised maintenance management system services but has been losing money over the past few years.

A new management team took over the company in 2017 and has since developed a fintech solution specialising in financial transaction management systems, using big data analysis, artificial intelligence (AI) and blockchain technology.

“Orion plans to turn around from net loss in FY6/18 by diversifying into fintech for end-to-end microloan applications and AI credit engine platform.

“If successful, we estimate this could lead to significant improvement in its net profit to RM14.4mil in FY21F,” CIMB said.

Stocks Analysis , Orion IXL