PETALING JAYA: GHL Systems Bhd’s outlook is expected to remain bright, underpinned by its strongest transaction payment value (TPV) yet, says Kenanga Research.
The TPV that was recorded in July this year will pave the way for a better quarter-on-quarter performance.
According to the research house, the leading payment service provider saw improvement from its cross-border e-wallet transactions on the back of the return of travelling and the wider usage of Alipay.
“As such, cross-border transactions now make up 20% of e-wallet payments, from 13% in the first quarter this year and 2% a year ago. The group expects the trend to continue into the third quarter with the gradual return of international tourists, especially from China,” it said.
Kenanga Research added that GHL’s new products, which will be rolled out regionally, will contribute to the positive outlook for the group.
“GHL has successfully obtained all the requisite approvals for the rollout of its direct merchant acquisition via the Mastercard gateway in the Philippines, scheduled for September 2023, with a subsequent launch in Thailand expected in December 2023,” it said.
It added that the micro-lending initiative has continued to record robust growth, with RM32mil deployed to date, which was a significant increase from RM24mil in the second quarter of this year.
“The group is optimistic that the timely introduction of this new product in Thailand will yield positive results, especially as the Thai government explores the possibility of removing visa requirements to attract Chinese and Indian tourists.”
Meanwhile, Kenanga Research said it will maintain its “outperform” call with an increased target price to RM0.98 from RM0.78 previously.
It said it favoured GHL Systems for being the largest player in Malaysia’s terminal-payment business; its presence in neighbouring countries as well as its venture into the buy-now, pay-later scheme.
“Some of the risks identified include slower TPV growth, the reluctance of merchants in adopting cashless transactions and competition from non-listed and overseas peers,” the research house said.