KUALA LUMPUR (Sept 18): AppAsia Bhd’s recent collaboration agreement with Telekom Malaysia Bhd’s (TM) subsidiary TM Info-Media Sdn Bhd will be the next catalyst of growth for the company, Rakuten Trade said.
Through the collaboration, which is for an initial period of five years, the digital platform developer of eConfirm.my would help transform the iconic Yellow Pages Business Directory into a digital business community of e-marketplace.
“It has a revenue sharing model with TM which we believe is a strategic move that will provide the next growth impetus. Yellow Pages is the leading business directory in Malaysia with easily searchable online of 500,000 strong business entities,” Rakuten Trade said in a note today.
The brokerage firm remained positive on AppAsia Bhd’s multi-year growth story on its recurring income stream from eConfirm.my platform and collaboration with TM.
It has a “buy” call on the stock with a revised target price of RM1.18 based on discounted cash flow and sum of parts valuation which translates to a financial year 2021 price-earnings ratio of 24 times.
At 5pm, shares of AppAsia fell eight sen to 65 sen with 34.04 million shares transacted.
Source: The Edge Markets