RGTECH - The gem that miss out from E-invoice theme
Backgroud:
RGTECH is engaged in providing retail technology solutions including retail hardware, retail software, as well as maintenance and technical support services.
Catalyst:
1. Recently, there are few software / digital solutions related companies released their impressive QR such as:
- PANDA achieved QoQ 1403.1% improvement
- IFCAMSC achieved QoQ 168.6% & YoY 522.4% improvement
- AGMO acheived QoQ 109.1% & YoY 325.4% improvement
2. RGTECH has similar business with PANDA which provide retail management. RGTECH’s clients are Parkson Holdings Bhd, Guardian, 99 Speedmart, 7-Eleven Inc and Aeon (M) Sdn Bhd.
3. The founder of the 99 Speedmart retail chain, Lee Thiam Wah, has emerged as the third biggest shareholder in RGTECH with a 15.77% stake. 99 Speedmart targets to open on average 250 new outlets annually with an immediate target for around 3,000 outlets operating nationwide by end of 2025. The more 99 Speedmart expand, the more benefit to RGTECH. Moreover, 99 Speedmart has filed a draft prospectus to launch an initial public offering (IPO) recently.
4. Gov servant increase salary & allow citizen to take money from EPF Acc 3 will increase local spending, indirectly benefit to retail segment.
5. Those clients currently fall in the RM100mil and above in turnover category and are working hard to meet the deadline Aug 1 2024 to implement e-invoice. PANDA, AGMO and IFCAMSC have related to e-invoice business.
https://www.hasil.gov.my/en/e-invoice/e-invoice-implementation-timeline/
6. Hypermarket sales will increase during Jan - Mac 2024 period due to Chinese New Year and implementation of the 30-day visa-free policy for Chinese citizens. Based on the Chinese Embassy, the number of Chinese citizens travelling to Malaysia for tourism and business has also increased significantly.
https://www.nst.com.my/news/nation/2023/12/993088/china-malaysia-mutual-visa-free-policy-ushers-historic-milestone
7. Company is cautiously optimistic about their business outlook for 2024 and expect that demand for retail and industrial automation solutions will remain strong, driven by businesses’ desire to increase digitalisation and automation.
Technical Analysis
EP 0.365-0.37
SP 0.35
RST 0.385
TP 1 0.40
TP 2 0.44
TP 3 0.50
a) Trend: Mid-Short term uptrend
b) Cross above MA5,10,20,50
c) ADX, RSI and Stoschastic pointing up
d) MACD cross up and above 0 central line
e) Volume start increase since Mac 2024
Disclaimer : The above opinion is never intended to be a BUY SELL CALL. The above article purely for education purpose base on observations, chart and data. Thank you.
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