AppAsia expects 2020 a milestone year with significant digital platform launches

KUALA LUMPUR, July 27 -- AppAsia Bhd, a digital platform provider and advanced mobile applications specialist, expects 2020 to be a milestone year for the company as it pushes the boundaries to launch some significant digital platform projects.

It said AppAsia’s wholly-owned unit, Extol Corporation Sdn Bhd, launched eConfirm.my, Malaysia’s first and only industry-wide electronic bank confirmation platform, with the Malaysian Institute of Accountants (MIA) in June with exclusive right to manage and operate the platform for 12 years.

“eConfirm.my is targeted to be used by all the registered auditors with MIA and banks operating in Malaysia, including all commercial banks, Islamic banks, investment banks and development financial institutions,” it said in a statement today.

It said thus far, nine banks, including Maybank, RHB Bank, Hong Leong Bank, Alliance Bank and OCBC Bank, as well as the country's top audit firms, among them Deloitte Malaysia, PricewaterhouseCoopers, Ernst & Young, KPMG and Baker Tilly International, have embarked on the platform.

“To date, there are 391 member firms of MIA who have already signed to use the services of eConfirm.my,” it said.

Meanwhile, online equity broker Rakuten Trade said in a research note that AppAsia’s foray into being the sole service provider of electronic bank confirmation platform is set to be a game-changer and expected to contribute significantly from financial 2021 onwards when it becomes the new normal for audit confirmation.

It said AppAsia’s core strength lies in their information and communications technology (ICT) security business under the brand name of Extol, which has been one of the long-established players since 1984.

Furthermore, it said, the company has another two divisions, digital content primarily in advanced digital publishing and e-commerce business in business-to-customers (B2C) and business-to-business (B2B) via its e-Marketplace.

It said the company has also recently ventured into the lucrative money lending business supporting their online e-Marketplace customers.

“AppAsia’s balance sheet is healthy with net cash position of RM3.2 million and zero borrowings.

“We expect the group to see a significant jump in earnings as e-confirmation adoption by auditors takes off in 2021 and is akin to a concession with sustained recurring income for many years to come,” it added.

Rakuten has recommended “buy” on AppAsia with a target price of 68 sen.

As at 4.45 pm the stock was traded at 46.5 sen with 25.68 million shares traded.

-- BERNAMA