ManagePay Systems Berhad (ManagePay) provides integrated electronic payment solutions. The Company operates in five segments: Payment services, Terminal services, Loyalty Management services, Business process outsourcing, and Software and ICT services.
Payment services include merchant acquisition and connectivity infrastructure for electronic payment.
Terminal services include electronic data capture point of sales terminal rentals (EDCPOS).
Loyalty management services include delivery of software application as a managed service to business owners.
Business process outsourcing includes provision of Smart chip-based VISA and MasterCard (EMV) card personalization services.
Software, security and ICT services include software development and system integration services.
The group's revenue was very small and has been making small losses in the past few quarters.
ZZZZZZZZ ......
But this is not the end of the story. The group has BIG plans.
First of all, let's look at its balance sheets.
The group has net assets of RM99 mil. However, cash is as much as RM61 mil. That is 61% of its net assets.
The cash was obtained through private placement and exercise of Warrants in past few years.
The above information was extracted from Annual Report for the financial year ended 31 December 2016.
The group is very gungho about Fintech and is planning to venture into it in a big way. They have even obtained a Money Lending License from BNM, in addition to its Peer To Peer Financing Platform which acts as intermediary (instead of lender).
(Source : FY2016 annual report)
As shown above, they acquired 29.5% in Trustgate in January 2016 for RM1.8 mil cash. Trustgate has turned around and generated RM1 mil profit. Trustgate is principally involved in digital certification. The following is the rationale as set out in the September 2015 announcement :-
The group's venture into Fintech is still at its early stage. We will have to see whether they can indeed grow it successfully.
One potentially negative development I noticed is Tencent's recent proposal to introduce Wechat Pay into Malaysia. How would that impact Managepay ? Is Wechat Pay a competitor to Managepay ? That is something for investors to ponder.
