KUALA LUMPUR: GHL Systems Bhd remains upbeat on its outlook for the year, underpinned by the rebound in offline retail transactions as well as the resurgence of cross-border e-wallet transactions via Alipay.

Kenanga Research said GHL aimed to fuel growth by introducing lucrative product offerings such as the direct acquisition of merchants and extending its micro-lending services in Thailand and the Philippines.

In line with its growth trajectory, the firm said GHL System was committed to introducing higher-margin product offerings that would fuel its expansion. 

"The company has successfully obtained the required approvals to initiate direct acquisition of merchants in Thailand and Philippines, with the rollout scheduled for August and the fourth quarter (Q4) financial year 2023 (FY23) respectively," it said. 

Kenanga Research said GHL's micro-lending initiative had gained good traction, with RM24 million deployed year to date (YTD), an increase from RM7.8 million in February 2023. 

"With an average lending size of circa RM50,000 per merchant, GHL is poised to extend this valuable service to neighbouring countries such as Thailand and the Philippines within the current year," it said.

Kenanga Research maintained its forecasts on GHL with a target price of RM1.05 and "Outperform" call.

"We like GHL for being the largest player in Malaysia's terminal payment business, its venture into the buy now pay later  scheme, and having a growing presence in neighbouring countries. 

"Risks to our call include slower transaction payment value growth, reluctance of merchants in adopting cashless transactions as well as competition from non-listed peers and overseas peers," it added.