PUC IS GIANT IN THE MAKING
PUC today gotten approval from BNM to issue electronic money (“e- money”) via its mobile application pursuant to Section 11 of the Financial Services Act 2013 (“FSA”).
E-money is a payment instrument that contains monetary value that is paid in advance by the user to the e-money issuer. The user of e-money can make payments for purchases of goods and services to merchants who accept the e-money as payment. E-money can be issued in different forms, such as card-based (e.g. prepaid card) and network-based which can be accessible via the internet, mobile phones or any other devices.
There are two types of e-money schemes, i.e. small scheme and large scheme, which is determined by the purse size and the outstanding e-money liabilities. The Approval from BNM to EPP is for the large scheme.
What does it mean?
With this approval, PUC is allowed to offer new product, called e-money or in other words, e-wallet. This will be the GAME CHANGER to PUC's earnings from this year and onwards.
This product will put PUC in similar to Tencent, Alipay and Ant Financial. In fact, PUC is going to challenge them in a smaller scale at this early stage and will be growing like a Giant later on once it matures. They don't have to partner with them to grow.
They can stand on their own to grow with talent of pool they have and new technology. They would become distruption to those giants just like fintech become disruption to banking system now. So, with the money from this proposal it will realize PUC's ambition.
The profit that will come in DAMN huge. If we take as example 1% of Ant financial's net profit of USD814 million end of March, it would be around RM34million profit to come into PUC. That's in a smaller scale given Malaysia market size. Or if we discount further by half, still a huge jump to RM17million from its current net profit that less than RM1million.
It won't take too long to reach that RM17-34million profit in the near term because of the massive usage trend of smartphone and Internet of things is everywhere. The profit could be kicked in 4Q results. Conservatively, this one segment can give 1.7sen to PUC based on RM34million profit even after dilution. This segment alone would bring down PUC's PE to 7x from current 66x. If we take 10x PE, PUC would be worth 17sen at least.
However, for this kind of business, PE should be at minimum at 15x, meaning that PUC is worth 26sen. At current price, it should be doubled tomorrow or next week. That's the minimum!
Judging e-wallet outlook, the business is massive and has huge potential growth. My forecast of net profit of RM34 million for this segment is too low. By right, the profit should be around RM50 million as a floor.
This definitely will happen under this Guy, Mr Cheong Chia Chou. Everything is possible!!! Look at his background and his company, Pictureworks where it is now.
That's only for 1 segment. I havent touched on digitalisation of its media and advertisement segments.
In conclusion, PUC share price could LIMIT UP soon to reflect this potential booming profit!
Final say, PUC is a giant in the making. I repeat Giant in the making.
Grab as many as much as you can! You will regret missing it.
It's one of once in a lifetime stock you would not want to miss it. Grab as fast you can and as early as possible.