OpenSys (M) Berhad (code: 0040), engaged in providing solutions to the financial services industry in the areas of self-service machines and universal delivery systems and information technology (IT) services such as cheque deposit machines (CQM), automated teller machines (ATM) and cash deposit machines (CDM).
On 29 April, This Company has released The Annual Report of 2015. One of the most attractive product of Opensys is supply and maintains cash recycler machines (CRM). CRMs can accept cash from depositors and re-dispense them to withdrawers so that the cash is essentially “recycled”, resulting in a lower cost of ownership for the banks, which is about 25 to 30 percent in capital and operational expenditure. Banks branches can replace two ATMs/CDMs with one CRM. Going forward, there is a huge latent demand for CRMs in Malaysia. ATMs or CDMs which are typically can operate with 8 to 10 years. Hence, Banks are expected to replace ATMs or CDMs by CRMs. Currently, the penetration rate of CRMs is a mere 6 percent of the total installed base. If the banks in Malaysia start to install CRMs at their new branches or replace their older ATMs and CDMs for CRMs, Opensys is in a prime position to profit from it.
Besides CRM, Opensys provides business process outsourcing (BPO) for bill payment kiosks to utility, insurance and telecommunication companies in Malaysia. This bill payment kiosk allows customers to pay bills, reload prepaid cards and renew insurance premiums. In return for managing the infrastructure for these organizations, Opensys charges a fee for each payment transaction performed by their customers, resulting in steady recurring income for their Company.
For the financial year ended 31 December 2015, Opensys’s revenue and profit before tax surged 60 percent and 41 percent to RM72.51 million and RM10.65 million respectively from the corresponding period in 2014, largely due to robust sales of CRMs and more transaction volume of BPO business. The profit before tax could be better if the cost of revenue had not been impacted by the weakening of the ringgit. To noted that, the cost of material for kiosk are imported. So the depreciated of MYR will affect cost negatively.
Opensys registered revenue of RM 72.5 million for financial year 2015. In Year 2011, it was RM 29 million, representing a 25.7% CAGR for a 5-year period. In addition, liquidity is important for this kind of relatively small market capitalization company. For Opensys, the current ratio is higher than past few years. In FY2011, it is about 2.25 and increase to 2.61. For quick ratio, Opensys improved vastly from 0.95 in FY2011 to 1.6 in FY2015. This indicates the ability to meet its short-term obligation has been improved significantly. Furthermore, examine debt ratio (Total Liabilities/ Total Asset) can shun from a bad financial position. Currently, it is only 0.35 percent of capital are through debt, which is reasonable and considered healthy.
To conclude, this company is doing well and prospective earning is huge due to the low penetration of CRM. On 27 May, the FY2016 Q1 financial report has been released. The revenues have dropped significantly compared with FY2015 Q1 but one thing which was pointed out by Management is that order book for CRM remains robust. In the first quarter of this year alone, the order book for CRM has exceeded that for the whole of last year. This is expected to reverse the poor performance of FY2016 Q1.
From technical analysis, OPENSYS is currently in a sideway moving. RM0.20 is critical support point. So far, it does not buy signal yet. The best bargain price to buy this company is about RM0.22 from both technical analysis and valuation (Using FCF Discount model) view.
**This blog only serves as reference information and does not constitute a buy or sell call. Make your own assessment before deciding to buy or sell any stock.
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OpenSys (傲奔，代号：0040), 此公司专门提供机器例如ATM， CDM (cash deposit machines），CQM (cheque deposit machines)给银行。
4月29日，2015年度财报出炉，一样最吸引大家眼球的就是CRM (cash recycler machines)。CRM功能就是从我们这些小散户所存起来的钞票再重新分配给提款者。其实CRM此机器就是ATM 和CDM 的结合。这个CRM 重点在于能够为银行业者省下25%到30%的支出，因为银行能够用CRM 代替ATM 和CDM。CRM 前景受到看好因为ATM 或CDM 一般上寿命只有8到10年。而目前CRM在本地的渗透率只有6%，想象一下如果银行在全国各地的分行都用CRM 来替换ATM 和CDM，相信Opensys可以轻易获利。
除了CRM，另一项产品是BPO (business process outsourcing)。这是一个能让我们还些保单，账单和手机盈余价额服务等等。Opensys可以从中有个稳定的收入因为公司会根据机器的被使用的volume向那些公司来征收费用。
根据2015年度财报，Opensys的营业额上升了60%而EBIT则上升了41%，这归功于CRM的销售额增加和BPO的被使用的volume 增加。营业额增加了60%，EBIT却只有41%，这是因为马币的弱势引起的。此公司的材料都来自外国，所以都是成本都以外国货币作为结算单位。
营业额的5年CAGR(复合年均增长率)为25.7%。对于这种创业板股市，流动性和偿还负债的能力是相当重要。Current Ratio从2011年的2.25 增加到2.61。 Quick ratio，扣除了Inventory 的ratio，也是一个流动性指标。此公司Quick ratio 也从2011 年的0.95 上升到2015年的1.6，这证明流动性能力增加。另外，他们的debt ratio 也只有0.35，意味着每1块钱的资本，3毛5分是从debt 得来的，也算是健康的公司。
FY2016 第一季的财报也出来了，revenue 与FY2015 的第一季相比较，跌得很重。但是管理层也表示CRM的订单单单在第一季就超过了2015年一整年的订单量了。这绝对是好事。
从技术分析来看，目前没有什么买点，股价也相信暂时会继续以整盘的形式。RM0.20 是个支撑点。从技术分析和通过Free Cash Flow 的估价方法来计算的话，此公司最好的买点就是RM0.22左右了，这是最安全的价格了。
**此部落格只能以参考为目的，不是买或卖的指标。投资有风险，量力而为最保险。
