I am not sure if you managed to read my article this morning about PUC, but that article has been withdrawn by me the right after as someone influential whisper me that PUC will be the next LAZADA or 11th street.
It is not just that, I have been told few investment houses have met them for the update on e-money product after getting approval by BNM in Sept 2017.
There will be a follow-up annoucement with regards to e-money to be made anytime soon by this year. On that day, the Management will explain about their e-money product and clear off speculation of tencent or Alipay or as such.
This new e-money product is illustratively to be similar to what LAZADA or 11th Street is offering.
Yeah, of course PUC can't compete with them at this current stage BUT their product will change the landscape of their earnings going forward. It can't make earnings as LAZADA or 11th street is but could be huge enough for earnings per share to impress investors out there.
As e-commerce in Malaysia is still at infant stage and going to be massive from next year onwards, PUC is at the right timing to launch their product now.
They are now busy meeting with retailers to use their product as an alternative platform to LAZADA or 11th street. PUC has also entered cross marketing MOU with Bersian to secure as many as possible retailers to use PUC's new e-money product.
Normally, this industry is about volume game and margin. I heard 11th street's capex has yet breakeven after few years in Malaysia. I also found out that 11th street platform is relatively expensive as compared to LAZADA for retailers to sell their products. That's why LAZADA gain more market share.
No doubt LAZADA platform is still the largest in Malaysia. So, for PUC, the breakthrough could be faster as compared to 11th Street as PUC's new e-money product is complementing its e-payment solutions product. So, the-emoney is not new thing to PUC and would be easier to promote their product across the board.
In fact, PUC has been appointed as authorised agent in Malaysia for China’s Internet financial services group, Lakala Payment Co Ltd in 2015. They have also joinly set up cross-border financial platform to offer bilateral customers online financial and payment services. With this, PUC's new e-money product would also as benefit as LAZADA from China customers.
PUC also is going to have its own e-wallet on top of its new e-money platform later on.
Again, this is not about partner with tencent or Alipay or as such.
They really go agressive in this new product. That's why they proposed variation of utilisation of the proceeds raised from rights issue last year.
Apart from e-money, they still focus on their existing media segment. They want to move out from traditional media segment to digital media segment.
Among the efforts, they have entered agreements with Laputa for advertisements on private vehicles last few months:
Apart from this, PUC recently MOU with influencer to improve further its media business.
In previous quarters, we could see the uptrend of the Group's revenue on the back of higher media contribution but lower margin. 1H17 revenue has made up more than 70% of last year the Group's full year revenue.
With those positives collaboration for media segment, it could improve further its margin for this segment and boost more revenue from 3Q this year onwards.
This person said PUC is going to be goreng to around 60sen for their new e-money product lauches soon, strong 3Q results by this month and more visibility of PUC's better earings prospect after 3Q results release.
The current rally is just a warm up and only the beginning of the big Wave. A lot of blockage needs to be clear off as traders like to play stocks below 10-20sen. But once 25sen resistance is cleared, u would see the big wave come.
Believe it or not, is your decision. Again, I dont advocate any recommendation here.