Stock With Momentum: GHL Systems

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GHL SYSTEMS BHD (-ve)
GHL (Fundamental: 1.2/3, Valuation: 0.2/3) triggered our momentum alert most recently on March 31 at RM1.02. Yesterday, it was picked by our algorithm again, rising 19.6% to close at RM1.22.

Last month, GHL secured its first project with a Malaysian bank, CIMB Bank, to provide Payment Facilitator or Third Party Acquisition (TPA) services. GHL will seek to acquire between 3,000 to 4,000 merchants on behalf of CIMB in the first year, thus enabling the merchants to accept payments from various International Card Associations. 

The company would derive its revenue from terminal rental and merchant discount rates. GHL will also offer value added services to these merchants in the form of e-pay services (mobile prepaid reload and bill payment collection services). 

With operations in Malaysia, Philippines, Thailand and Australia, GHL is a leading payment solutions provider servicing a wide range of clientele, including the banking and financial, telecommunications and retail sectors.

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This article first appeared in The Edge Financial Daily, on May 15, 2015.