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Singapore Investment


 PERTAMA 8532 PERTAMA DIGITAL BERHAD gets ahead on active trade, but will this be a persistent upward share price movement?

Pertama DIgital Bhd rose 12.8% to RM3.27 on active trade on June 15, touching a 52-week high of RM3.38.

It has been an impressive run for the counter, which was trading at a low of 84 sen.

The reason for the amazing run in its share price is not evident.

Certainly, it is difficult to be bullish on the counter based on fundamentals.

In fact, many had expected Pertama Digital to tank after it failed to secure the highly sought-after digital banking license last year.

The share price did decline for a bit but has been trading at its best ever price so far.

Just look at its financials.

The fintech and govtech company plunged into the red with a net loss of RM1.8 million in the first quarter ended Mar 31, 2023 from a net profit of RM5 million a year ago mainly due to higher operating expenses.

Revenue fell a massive 73.6% to RM1.3 million in 1QFY23 from RM5.1 million a year earlier.

Going forward, Pertama Digital will continue to bank on its mobile and digital solutions business via Dapat Vista (M) Sdn. Bhd (DVSB).

DVSB, is currently implementing the 'coin conversion project.'

This initiative involves placing kiosks at selected commercial areas where the general public, including retailers and consumers, can sell their Malaysian syillings (coins) in exchange for money.

The funds will be credited to their respective bank accounts using the company's mobile application called 'MyPay.'

Alternatively, individuals can also purchase coins from these kiosks.

The company will generate transaction fees based on the total value of coins bought or sold through the kiosks by the general public.

The purpose of the coin conversion project is to provide a convenient solution for individuals to manage their excess or unused coins by selling them to the company's kiosks.

It also offers easy access to coins for those who need them.

The project aims to establish a sustainable ecosystem for the recirculation of used coins, as they hold monetary value and are commonly used in daily cash transactions.

As a result, there is expected to be a positive demand for these coin conversion services.

In addition, Pertama Digital is currently operating several other services.

These include the government’s SMS gateway known as mySMS 15888, MyPay (a mobile application facilitating secure and efficient check-and-pay transactions with government agencies), and eJamin (a digital bail payment solution used in Malaysian criminal courts).

Then again, all the above are not something new as this has been highlighted as its growth factors.

Investors would probably want to join in this ride if they are not looking so much on strong fundamentals.



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