KUALA LUMPUR (June 10): Rakuten Trade Sdn Bhd has a Buy rating on OpenSys (M) Bhd at 45.5 sen with a target price of 70 sen and said it was positive on the prospects of OpenSys in the wave of digitisation of bank’s branches and cost optimisation.

In an investment idea note June 9, Rakuten’s Vincent Lau said OpenSys is set to achieve record earnings for FY20 and FY21.

Lau said OpenSys’ new growth catalyst would be from its newly launched buySolar online marketplace platform; one stop end-to-end solar solutions for residential and commercial customers from purchase, installation, monitoring, maintenance, and financing.

“Next would be their SmartCIT cash-in-transit cash collection and management with IoT secured logistic solution.

“Both these new products are expected to contribute 30% earnings in the next 3 to 5 years,” he said.

Lau said the company’s balance sheet is healthy with net cash of RM7.6 million and it has been paying dividends consistently since 2010 with current dividend yield of 3.3%.

“Prevailing net margins remains stable at 11% and is expected to improve gradually over the years.

“This would catapult group’s earnings to new high and expect growth momentum to continue with EPS to chart growth of 15 % and 20% for FY20 and FY21 respectively,” he said.