KUALA LUMPUR (July 15): Shares in Revenue Group Bhd (RGB) rose 1.21% this morning after Hong Leong IB Research maintained its “Buy” rating on the stock at RM1.65 with a higher target price of RM1.98 (from RM1.67) and said it believes that RGB has become Lazada Malaysia’s partner to process payments made by Malaysian consumers via internet banking for purchases on Lazada online marketplace.
At 9.25am, RGB added 2 sen to RM1.67 for a market capitalisation of RM387.44 million.
In a note today, the research house said this is expected to add RM4.6 billion worth of transaction value processed by RGB.
“As a result, we increase FY19-21 earnings by 6-18% after factoring the expected incremental contribution from Lazada.
“Maintain Buy with higher SOP-driven target price of RM1.98 (from RM1.67) after earnings forecast adjustment and higher earnings multiple,” it said.