RichTech to ride on healthy electronic reload, bill payment outlook

KUALA LUMPUR: RichTech Digital Bhd is poised to benefit from the electronic reload and bill payment services industry in the country given its existing wide range of network users.

TA Securities Holdings Bhd said the electronic reload and bill payment services industry in Malaysia is estimated to grow at a compound annual growth rate of 11.5 per cent between 2024 and 2026.

This is expected to be driven by the ongoing digital transformation in both the private and public sectors.

RichTech, which is slated to be listed on the ACE Market of Bursa Malaysia in mid-February, is involved in the distribution of electronic reloads and the provision of bill payment services through its SRS platform.

The platform supports electronic reloads for services such as mobile airtime, game credits, app credits, and eWallets.

It also facilitates bill payments for utilities, postpaid services, internet, quit rent, and education loans.

"The group currently has over 800 SRS corporate users, comprising reload retailers such as resellers, mobile phone shops, sundry shops and apparel shops, as well as third-party mobile application operators.

"Through its network of these SRS corporate users, the group extended its services to more than 4 million users during the financial year 2023 (FY23)," said TA Securities in a note.

The firm estimated RichTech to record earnings growth of 5.3 per cent, 10.1 per cent and 11.5 per cent to RM5.7 million, RM6.2 million and RM6.9 million in FY24, FY25 and FY26 respectively.

The growth will be supported by its business expansion plan and a healthy industry outlook according to the independent market research report.

RichTech's initial public offering (IPO) entails a public issue of 54.66 million new shares and an offer for sale of 25.31 million shares at an IPO price of 25 sen apiece.

The company is scheduled to be listed on Feb 17.

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