CENSOF 5195 CENSOF HOLDINGS BERHAD GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88
Malaysia is going to implement e-invoice in stages, with a compulsory implementation by year 2027 in all businesses.
The
first stage will be targeted for businesses with turnover exceeding RM
100 million. Subsequently, in 2025 will be business with turnover
exceeding RM 50 million. 2026 is for businesses with turnover exceeding
RM 25 million, while 2027 will be for all business.
How is this going to benefit Censof in the long run?
Censof
core business is to provide software solution for financial management
system to both government and commercial SME businesses. To make it easy
- their business is "Software as a Service".
According
to the latest figure, there are approximately 1.22 million of SME in
Malaysia, contributing to 38% of the GDP in Malaysia.
Emergence of a new big market pie with compulsory implementation of e-invoice feature in all businesses.
With
the real time requirement, the software provider will need to link to
LHDN system. Hence the software will need a renewal fee every year for
support and maintenance.
With
the adoption of e-invoice, it will be estimated that each SME will be
needing to pay around RM 3000 to RM 4000 (depends on software complexity
and number of users).
In
summary, the compulsory implementation of e-invoice will bring about a
new big market of RM 3.66 billion worth of business in ecosystem of
ERP/POS system. (1.22 million SME x RM 3000)
If Censof is about the capture 15% of the market, that will be worth RM 550 million a year in revenue.
I
am invested into Censof for a long term as I can see the potential of
the company revenue and profit and dividend growth in the next 3 to 4
years.
Will be looking and sharing Censof software application and potential in the following update.
IMPORTANT NOTICE
Please
be informed that I am not a professional or certified analyst. I am not
a licensed consultant, just a normal retail investor. I am just sharing
my ideas and opinion on the market outlook. Any company mentioned
should not be interpreted as a buy/sell/trade call. Please do your own
research and buy/sell/trade at your own risk.
https://targetinvest88.blogspot.com/2023/12/censof-growth-opportunity-with.html
