GHL rises 2% after CIMB Research ups target price

by **Cals** Wed 30 Sep 2015, 22:08

GHL rises 2% after CIMB Research ups target price

By Surin Murugiah / theedgemarkets.com | September 30, 2015 : 9:41 AM MYT

KUALA LUMPUR (Sept 30): Shares of [size=16]GHL Systems Bhd ([You must be registered and logged in to see this image.] Valuation: 0.40, Fundamental: 1.20) rose as much as 2% in early trade this morning after CIMB Research maintained its “add” rating on GHL with a higher target price of RM1.65 (from RM1.45) and said it was encouraged to learn that GHL’s card transaction payment acquisition (TPA) operation is gaining traction in Malaysia and the Philippines.

At 9.20am, GHL pared some of its gains and was up 1% or one sen to RM1.01 with 223,600 shares traded.

In a note Sept 29, the research house said it expects GHL to deliver a total of 3,000–4,000 merchants by end 2015.

It said GHL was also actively growing its online merchant base through e-GHL.

“It targets to raise its merchants from 600 to 4,000–5,000 in 3 years’ time.

“We cut FY15–16F EPS by 10%–20% due to delay in card TPA deployment but raise FY17F by 10% as we expect a stronger earnings from TPA & e-GHL.

“Reiterate 'add' with higher target price of RM1.65 as we roll it forward (23x CY17 P/E),” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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