Stock With Momentum: GHL Systems

This article first appeared in The Edge Financial Daily, on July 2, 2018.
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GHL Systems Bhd (-ve)
Shares in payment service provider GHL Systems Bhd (fundamental: 2.2/3, valuation: 0.2/3), which triggered our momentum algorithm last Friday for the first time this year, closed five sen or 3.15% higher at RM1.64.

It saw 1.55 million shares traded, more than twice the counter’s 200-day average volume of 681,457 shares.

On June 20, GHL, via its wholly-owned unit GHL (Thailand) Co Ltd, announced it had secured a contract to supply Krung Thai Bank pcl (KTB) with up to 38,000 electronic data capture (EDC) terminals.

While the value of the contract was not disclosed, GHL said the EDC terminals are expected to be deployed throughout KTB’s vast network of merchants to enable the acceptance of electronic payments in the form of credit and debit cards — including Thai QR payment — as well as government-related payment services.

Recently, the company appointed Datuk Chan Choy Lin as an independent non-executive director. Chan has over 30 years’ experience with public listed companies.

The stock is currently trading at 3.9 times its book value and has a market capitalisation of RM1.2 billion, based on its latest traded price.