NETX can be seen as a HUGE beneficiary of the Digital Free Trade Zone (DFTZ ) and a key player to transform the mobile payments solution market in Malaysia.
1) NETX ‘s Subsidiary, PayAllz will enable multi-platform payment gateways with the likes of Alipay, Wepay, Apple Pay and Samsung Pay. PayAllz’s electronic payment platforms such as the mobile Point of Sale (mPOS) device, are increasingly being used by retail merchants and stores
Netx partners with XOX to develop an electronic payment mobile exchange that enables every XOX Bhd subscribers to be an e-commerce merchant. ( XOX aims to have 2 MILLION subscribers in 2017)
2) NETX is developing the revolutionary Mobile Payment Exchange System ( MPEX) which is a Disruptive Technology. The differentiating factor of MPex is that users will be able to make and receive payments for transactions using established payment services such as WeChat Pay, Union Pay, Visa and MasterCard by scanning the merchant’s common QR code at the counter.
3) ALIPAY and WECHAT Pay controls about 80% of China’s mobile payment market worth
USD$ 5.5 TRILLION. China will soon turn to a CASHLESS society. IF merchants do not use QR codes, they stand to LOSE.
4) MACQUARIE has funded MPex for RM 25.5 million via share issuance scheme.
NetX’s executive director Steve Tan said the group intends to be “one of the key players mobilising and enabling this exponential mobile growth”.
“Macquarie coming on board symbolises their FAITH in us as a group and our product as the Leading platform for this movement,” Tan said. (The Edge, June 2017)
The MPex system is targeted for subscribers from Malaysia and China. The Group will be able to derive revenue from the MPex system via the following sources:- (a) merchant subscription fee for using the MPex system; (b) transaction charges levied on the merchant based on the transaction value; (c) foreign exchange charges, if any, to the merchants; and (d) referral charges levied on the merchant for every successful transaction.
In simpler terms, the more the users and merchants, the higher the profits
5) In 2015, Malaysia welcomed only 1.7million china tourist who spent RM 5.7 billion.
Malaysia targets 8 MILLION China Tourist by 2020. Based on the spending pattern of China tourist in 2015, Malaysia can expect about RM 25 – 26 Billion of income from them. IF NETX has conservative a 0.5% share of that… do the math. (Remember, Alipay and Wechat controls about 80% mobile payment market of CHINA and therefore, it is HIGHLY LIKELY that tourists will use their app to purchase our items provided if the local merchants have MPEX )
6) Expansion Overseas into Cambodia, Indo china region , Middle East and China. In mid-2016, it partnered with Rockville Technologies LLC to provide electronic data capture payment solutions in the Greater Middle East region. Rockville which operates in Kuwait, the United Arab Emirates and Sri Lanka, among others, have serviced notable clients such as Telenor, Warid and Mobilink.
7) Goodwill incurred of 30 million 8 years ago has been parred down in the past 3 years. It has high cash in hand for growth and low debt.
8) In May 2017, Netx subscribed to 51% of FoM (Flavours Of Malaysia ) shares worth RM 1.87 million. FoM offers Malaysian specialty Food & Beverage products in China. The partnership intends to develop a Halal-certified e-commerce market place for goods and services between Chinese and Malaysian consumers and will use NetX’s integrated MPEX. China’s estimated 26 million Muslims contributed around 0.1 percent, or $10 billion USD of the F&B industry in China ( State of the Global Islamic Economy 2015/16 report )
(Assuming NETX can obtain a 1% profit from that untapped marketplace, it is worth $100 million USD)
9) In summary, NETX, has started to make profits in the recent quarters and the drastic surge in revenue is something worth noting.
Buying interest may be present as volume is picking up recently based on the chart.
The mobile payments solution market is growing at a Stratostrophic rate in Malaysia and worldwide.
This penny stock is competing in a BILLION dollar market.
0.15? 0.20? 0.50? Time will tell.
Could this be the NETX BIG THING?
Well, a Tech Beast once said..
“Next Is Now”
Trade at your own risk.
The author will not be held liable for any decisions made.
(Refer to previous article below about Palette when it was trading at 0.11/0.12 )