KUALA LUMPUR (Oct 31): BIMB Securities Research has maintained its "Buy" call on GHL Systems Bhd at RM1.39 with a higher target price (TP) of RM1.80 after the company announced yesterday that it has enabled WeChat Pay's e-wallet acceptance at its selected payment touch points across Malaysia and Cambodia.

The new discounted cash flow (DCF) derived TP implying 2019/2020F PE of 45 times/37 times before easing to 29x in 2021F reflects the long-term growth potential of the transaction payment acquisition (TPA) business further.

Its analyst Afifah Abdul Malik said in a note today that in addition to the acceptance of WeChat at its selected pay terminals, GHL will also enable the acceptance of ringgit-based WeChat Pay MY for Malaysia users and Renminbi WeChat Pay payment option for internet transactions in Cambodia.

This is in addition to the acceptance of Renminbi-based WeChat Pay for its Chinese users.

"We are positive on the news as this would support the growth for GHL's e-wallet segment under the TPA business," she said.

This also provides an additional payment option for Chinese tourist besides Alipay as both platforms account for over 90% penetration rate in China.

The research house noted that since GHL enabled Alipay in 2016 for Chinese tourists visiting Malaysia, transaction processing value from Alipay surged to RM500 million by 2018.

"With WeChat Pay on board and the target to welcome 3.5 million Chinese tourists during Visit Malaysia 2020, the growth outlook for the TPA segment looks promising," it said.

GHL shares were unchanged at RM1.39 this morning, giving it a market capitalisation of RM1.04 billion.