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Monday, April 10, 2017

REXIT - Another Big Opportunity For Growth

Today I would like to share my study about this company. Which is totally for own study, not recommend reader to make buy/sell or any intention to promote it. 
Just blogging about what I study lah !

Please invest at your own risk and do not try to PUMP and DUMP which is not good for market !

REXIT (0106) , this company is interesting, because it look like macam got inherit MYEG, GHLSYS 's DNA.

What's the Formula of these company DNA ?

Let me share about MYEG first:


In year 2013, that's the starting point where MYEG start to rise and forever and ever until last week still break new high. Do you ever ask why MYEG price can keep going up?

Look at the Bonus History of MYEG:


Don't look at the share price which only RM 2.0, but it's actually worth RM 52.80 if without any Bonus split from 2007 until now. It's about 10 year, from RM 0.10+ become today RM 50+. Of course the able to give bonus are mainly due to profit strong growth over the years.

How about GHLSYS ?

GHLSYS
has even longer history in Bursa compare to MYEG.

MYEG IPO on  November 2006 at RM 0.55 PER SHARE, while
GHLSYS IPO on March 2003 at RM 0.20 PER SHARE.



If we look at GHLSYS stock price, it's also break new high, and once again don't look at current price only RM 1.55, it's once again because of many time of BONUS issue.


From IPO RM 0.20, until today without Bonus split, it's actually about RM 2.38 (if not count mistakenly.)

From what we learn here is that MYEG and GHLSYS doing pretty well in the past 10 years.

Why is this so?

What is the DNA of MYEG and GHLSYS that make them so successful? The genetic instructions in the growth, development, functioning and reproduction (bonus) in MYEG and GHLSYS are mostly based on few thing below:

1. Payment system though internet
2. Government related services
3. Almost Monopoly Business
4. Very high recurring income which mean sales repeated
5. Both are started from Ace Market before
6. Using Technology to grow business
7. Once got profit growth then Meletup
8. Able to keep on growing in market/product/service
9. Fit to latest FINTECH trend

And so what is so Exciting about this REXIT after looking at MYEG and GHLSYS? 

First we compare the stock chart:


Technically REXIT stock price has just breaking nearly 8 year high, A sign of bullishness in the making and I believe it's a preparation for all the reason below:

REXIT IPO during October 2005 at RM 0.32. We can see after IPO the company enjoy strong growth in profit and its stock price Meletup so big to as far as RM 3.10. And there after the financial crisis of 2008, caused it crash and have been big sideways until now almost 8 years, lowest we see about RM 0.30. And the price now are just only times 2 of IPO price, but MYEG and GHLSYS already far more beyond. Why? We will tell you later.

Although market crash, we still see the company able to retain its earning, and gives dividend every year without a missed !!??


From year 2006, start giving dividend until now, total dividend paid RM 0.305 almost 100% return from IPO price of RM 0.32.

The company are actually very generous in giving out dividend which become one of the reason share price din't really move up a lot because cash reserve always paid as dividend. Then why are we finding REXIT remain interesting?


Even the Bonus History only one after year 2006. Compare to MYEG, GHLSYS seem to be unmatched. If you think like that, then you will missed the future things that you might not foresee !!

We got to tell you REXIT are ready to give BONUS again like MYEG or GHLSYS ! 


Look at REXIT latest quarter result, Retained profit already more than Share capital, which enough to give at 1 for 1 Bonus. Just it's matter of time and whether the company wanna give. And look at they have so much cash of RM 28 Millions (ready to acquire new business or other company), and debt are just so little, just based on this already know this company are very safe in investing point of view !

How about do REXIT have DNA of MYEG and GHLSYS ? 

We can see MYEG big spike up after get the foreign renew permit and possible of GST monitoring system, steady profit grow, while GHLSYS although profit grow slowly (look similar like REXIT) but once they got news with ALIPAY, limit up !

What REXIT have in order to Fly like MYEG / GHLSYS? 

Actually over so many years, REXIT business has been very stable which main income from E-Cover, which is the general insurance system.


We can actually notice quite many famous Insurance company using this E-Cover platform. I myself also ask my car service centre to handle the renewal of car Insurance, and they will send to one of the insurance company listed above. This tell me that, the business are repeated every year, and we can see so many new car and motors everyday, so the business unlikely die or slow down much.

This year, finally will be game changer for REXIT to stage another stage of growth after so many years due to latest De-tariffication of General Insurance in Malaysia.

Please refer to this link to understand more:
http://www.theedgemarkets.com/en/node/314023


This De-taffication will start on 1, JULY 2017, so time will tell whether market will go shout this stock or not that time. Just like how MYEG price rocket when take foreign permit and others, GHLSYS got deal with ALIBABA.

Not only that, again, we notice REXIT are doing international business !! This show that REXIT business is not limited in Malaysia only, the growth opportunity remain high !!


We notice REXIT already cover to few country now, what if they expand to INDONESIA? Or other Asian country? That will immediately see super growth rate and especially if they come out with more product and services, then can immediately sell to all these country.

New product such as LIFE INSURANCE sell online? That's something going to happen in Malaysia too !


Lets look at how 2016 annual report say on year 2017 outlook :


Company are expecting positive contribution from De-Tarffied Module in 2017 this year !!!


Seems like 2016 Annual report has already tell everyone that they have successful e-Cover system in Hong Kong, Singapore and Thailand. Interestingly Malaysia are just started this de-tariff module which is exactly right timing for growth business !

The e-Cover portal also seems to be upgraded to able to support all type of device and system, which show a very good improvement as well. (The company ins't sleep for past 10 years, they actually did something, just not yet show on balance sheet)

Another reason that MYEG and GHLSYS able to rocket up but REXIT still not ! 

It's simply due to MYEG and GHLSYS already move to Mainboard, only if move to Mainboard then big local fund can start buying (I guess), that's the reason REXIT still lag behind. But WAIT !!

From year 2013 to 2016, net profit RM 4.7+3.4+5.3+6.8 = RM 20.2 Million

REXIT already eligible to apply transfer to Mainboard ! 

For the past 4 year, REXIT has made more than RM 20 millions profit, which already enough to transfer to Mainboard. It's matter of time the company proposed to transfer, if they want to get more investor attention, they will sooner apply, maybe they are now busy with Malaysia De-tariff projects, who know after complete, by year end or next year they apply?

Once success go Mainboard, I don't think it still can stay below RM 1.0. Remember my words !

You should know that, in ACE market, there are total 113 company, not much can continue profit for the past 10 years. We can see stock like JHM, OCNCASH that listed in ACE stock has finally show successful story after bank cover on it, after strong result, and price Meletup big. 

This is something we should take note as it show the company future prospect !


As a conclusion:

1. REXIT potential to be next MYEG or GHLSYS.
2. REXIT give a lot dividend, good yield !
3. REXIT is a nett cash company.
4. REXIT balance sheet ready for BONUS ISSUE.
5. REXIT going to benefit from Malaysia De-tariff plan.
6. REXIT doing international business.
7. REXIT is ready to go Mainboard.
8. REXIT are the very few remaining good FA stock in Ace market.
9. REXIT technically just break 8 year high, look bullish

My own personal "hope" for short term price to reach RM 0.90, mid term hope RM 1.50, long term hope RM 2.80. 

By the time I write this post, I already own a little REXIT shares, and please don't try to PUMP and DUMP this stock as I want to invest peacefully.

Above are purely sharing information that might have errors cause by human mistake, miscalculation, and for education and personal reference only.

1 comment:

  1. technical-analysis is a trading tool employed to evaluate securities and provides accurate forecasts which are prepared by expert technical analysts

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