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EPY - ePay Asia

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dmasvar

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Hi,

I'm curious, I've being following this company formely skynetglobal of which it is no more,its into pre paid top ups for mobile phones,it provides the systems and so forth..

anyway, in four countries, they have what i would have considered some very decent numbers coming through the system..

does anyone else follow this,a search on the forum shows no one has posted about it..

running at PE of 15, forward looking growth rate of 50% at least..

first quarter $1.33m, recent 2nd quarter $2.1m net earnings!!

191m shares outstanding..

why aren't people giving it the attention it deserves?

too much mining i suspect?

any thoughts.. last 6 months of announcement is worth reading to give a good picture of what its doing..



Admin Note: ePay Asia (EPY) was formerly known as SkyNetGlobal (SKG). You can find discussion on SKG here: https://www.aussiestockforums.com/forums/showthread.php?t=1723
 
should be a good month ahead for epy as they hit the road..

is anyone else following this stock..?
 
One stock which I have followed is the turnaround story and transition of skynetglobal, which although was once a dog is no longer a dog, its one of those rare reverse floats which has done incredible well but exposure or lack of it including correct and updated coverage is one of its key problems.

Just quickly.

They are in the business of providing pre paid top up systems for mobile and disuel fule.

In the last six months, it has more than delivered as per prospectus.

I believe all the interest with uranium and mining in general with other big weighty stocks has left the performance of EPY unnoticed.

Operate in 4 countries, Malaysia (90% of revenue), Indonesia (06' will make for them some $350 000 in USD), Pakistan (recently signed with 2nd largest telecom company there to introduce pre paid technology) and Thailand.

Now here are the financials.

1. 1st QTR, $1.33m net earnings attributed to them, which represented 140% increase in net earnings compared to last quarter.

2. 2nd QTR, $2.10m net earnings attributed to them, which represent some 277% increase in net earnings compared to 2nd quarter of last year! Has any company on the ASX or for that matter a small company on the ASX performed this well (forward looking we're talking most probably very close to triple digit as Indonesia will have kicked in, Pakistan will also have begun, their petrol top up introduced in Malaysia will also begin contributing and the consolidation of Malaysia's pre paid top up will continue).

The other financials are equally impressive, they are growing or this year are growing at triple digit rates and next year forward growth should be at least around 50% to 80%, if you use a PEG ratio adjusted for growth, this is an attractive company.

At prices of 46cents, with 191m shares, its a 14 to 15 PE, cheap when compared to financials and growth rate forcast and evidence of turnaround already provided.

EPY provides true exposure to Asian growth in telecommunication as well as other large industries (recently introduced pre paid top up for diseul fuel).

Additionally, some sensitve news of last 6 months.

1. They announced 1 and 2nd quarter results as mentioned.

2. They ditched entirely the W home business or wi fi business associated with the legacy business of skynetglobal, complete to Big Air (also listed) for $500 000, part cash and part $350 000 of shares in Big Air, unrestricted.

3. They teamed up with Ufone of Pakistan, 2nd biggest player there to start introducing the system.

4. They have bought out the minority shareholder of Indonesia. E Pay Asia now owns 63% or there abouts of E Pay Indonesia. Indonesia is making money for them and is profitable, will make some $500 000 USD, E Pay Asia shares of $350 000 USD. Because E Pay Malaysia is owned 60% by E pay Asia, they get 60% of the $500 000, the 40% of E Pay Malaysia is owned by Euro Net (who runs E Pay system in Australia and other western countries).

The structure looks initially complicated but isn't,the primary business is Epay Malaysia which generates 90% of the income.

5. They have introduced a pre paid petrol top up system and signed contract to do this with 1000 diself fule stations across malaysia (they have a major investor connected with Malaysian Government finance arm and this probably helps with negotations)

6. They have paid for Mobiepay a developer of mobile pre payment technology which will assist with the entry into China later in 07'.

It is amazing how uncovered this company is.. it represents hardly any risk for the medium term, only risk is illiquidy and lack of exposure (though this is improving over time as increasingly it can't be ignored).

7. They also announced 20% increase in net earnings, from $5m in prospect to $6m.

They have already earned net earnings of $3.4m ($1.3 first quarter and $2.1 2nd quarter)... this doesn't include the money from Indonesia or the other 2 countries of Pakistan and Thailand, the also make some money from leasing the technology).

They have being in business for 3 years before floating and have made a profit from year 1.. they are experiencing the growth that may have being associated with successful outfits like WTF wotif, but wotif experienced most of their successful growth while a private company, EPY is doing it righ tnow before our eyes..

They have expecdtation in 07' to enter another 4 countries, China, Vietnam, Singaore and Phillipines.

In Malayasia they have a stronghold of 60% of the market for pre paid top up.

Asian countries will be using pre paid for a long timne to come yet.. they like cash, its developing economy and the penetration and credit worthiness is not there for the majority of people to pass credit card checks.

Can't see this stock going backward.

Also the infrastructure of some 15 000 point of sales in Malaysia and 4500 ATM top up system means a sizeable asset to cross use to assist make payments like eftpos or billexpress in Australia..

Essentially, you have a reasonably priced stock at 14 to 15, you have exceptional growth and continual growth forcast, in addition to proven 2 quarters of net profit earnings. They have also stated to pay 40% dividend out. They have proven ability to deploy the system. The technology backed by large European company, Euronet.

They will have to revise towards their financial year end of 31st December 2006 upwards (and this will provide the impetus towards $1). Its very likely that people aren't going to not make calls just to spite the company for the next 2 quarters.. so 06' projection will again be exceeded.

There is enough financials to cover the stock and make some tentative recommendation to clients and its unlikely they will not be rewarded?
 
EPY - E - Pay Asia - Special Cross Trade $1.7m

Hi,

I'm not an expert with the intricate mechanics of the market processes, but in my westpac screen, there is a new and very large and unexpected what they term "special cross trade" of $1.7m, that's a huge amount for this stock,so it means somebody is finally taking notice of the stock and its recent 6 months of amazing announcements .. solid business of pre paid top up of mobile and petrol.

anyway, how does a special cross trade work, who are the participants, is it institutionals talking to each other over the phone and coming to agreement to make the trade.. so they don't have to effectively list the by and sell orders on the market, only the resulting trade..
 
I really like this stock. I think it has great potential. I just dont have the funds to buy it atm. I definately would consider investing in this stock. Their revenues have been increasing over the last 5 years and they are going to start becoming profitable. Great company with the future for mobile phone top-ups
 
Re: EPY - ePay Asia - new volumne high 4.2m

exactly, its such a little unknown,but today is different, today we saw a cross trade worth $1.7m or 4.2m shares exchanged hands with somebody, likely the company themselves...

so a big investor finally and its just the start..

as far as profitable,they already are..currently after tax first quarter $1.33m, 2nd quarter after tax $2.1m, that's $3.43m alreayd for 6 months of trading, which is NPAT, they already accounted for tax in these figures..

hence its likely that this company will make some $7m, with 90% of revenue in Malaysia.. there are the other countries to kick in,particularly Indonesia which is already profitable and made $350k USD for them...

its amazing potential and for a long term investor say 3 years, you can't go wrong, even less than that.. its a serious $2 and more company..

compared to PWK, WTF and others, this is a convervative company, growing exponentially, conservative by gearing and so forth, cash generative...

we are experiencing the explosive growth that WTF had, but WTF has a private company when it experienced its growth momentum..
 
EPY - E-Pay Asia

website: www.e-payasia.com


One important thing that people should be aware of with this stock is that for the december year end for this company of 06,they will make over $6m NET of TAXES, as all earnings are overseas and particularly in Malaysia, of which 80% of revenue is derived, they have tax exempt status for another 5 years as a developing company so net earnings stated quarterly is actually net earnings of any tax expected.

There will be no australian tax on this,so you have a company trading around 10 to 14 PE that will make close to $7m (for six months to june, they made already $3.43m)

They will continue to increase by 50% expected for 07 and 08, if you use a Price Earnings Multiple adjusted for Growth, this is cheap value for this company.

Also there is no debt with the company.

Another important thing to bear in mind when reading their financials is that they must pay for air time that they provide for their card holders from telecommunication company and this amounts to some $6m every week..

So you will see short term debt of around $6m, this is working capital that turns over and over.
 
Re: EPY - consistent, steady buying today

good sign today,

there is interest and it looks like he's roadshow is causing the interrest.

curiously enough although at the announcement of 2nd quarter earnings he made mention about a road show he has not announced when this will begin..

hence it has not begun but people are buying in preparation for this roadshow to spike the share price...
 
hello fro england,
had two really good days tradeing,good buying volume,seems to have turned the corner,all we need is for you aussies to start buying! lol

cchartli7.png


today in uk
 
thanks zztop.. this is really helpful..

saves me a lot of time looking..

he're something new from this wire for aussies

E-Pay Asia Limited e-pay Asia to roll out electronic top up network to Malaysia's post offices

LONDON (AFX) - e-pay Asia Limited said that following a six month pilot
project, it has entered into an agreement with Pos Malaysia Berhad to extend its
electronic top up network throughout the Malaysian national postal company's
more than 900 post offices.
The provider of electronic payments said the agreement strengthens its
Malaysian distribution network, and with the national roll out of additional
terminals scheduled to be completed within six months, it will have 10,000
points of sale.
newsdesk@afxnews.com
cml
 
what is really interesting is that they have made an announcement but it hasn't appeared in the ASX.. is this a normal thing, seems this stock also listed on AIM, there was announcement today but the news is still not on ASX?


news about deal with malaysia postal service
 
HI runlikehell
we dropped a penny today in the UK,spose it was to be expected after some good gains of late,EPY shareholders here seem to be happy enough at the moment cos as they say we are getting higher lows,if you know what i mean,we do seem to have a 50k seller which seemed to effect the sp today,and the 50k seller has been around for the past few days,most here seem to think a upward move to 30p min (aus that woud be around a$0.60?)is over due,we do seem to take the lead from auatralia,so poor in aus,we get poor uk,the news you posted earlier, was released in the uk,but had little effect on the sp,but after the terror threat,the markets are poor,
in general,i feel we are in a quiet period for the uk markets( holiday season,lasts till the end of august)so when everyone returns i expect major action here,most in uk seem to buy more on any weakness,some days EPY are hard to buy in good amounts,all trades are delayed! i hold a shed load,like most over here, have a good one..

steve
who lives in England.. :O)


http://mwprices.ft.com/custom/ft2-c...site=&company=NEW&selected=E-Pay+Asia+Limited
 
runlikehell.

most of the time news is released on ASX first, we have to wait. today we got it first,lets see some +ve movement in the sp..from your end..
 
thanks for the post zztop..

keep coming back as i need to speak to people with an interest in epy and how its seen in the UK and this really helps.

the other question i had is how does it work with a dual listed ocmpany on the ASX and the AIM board..

in a perfect world, one should influence the other, but does it work this way, does what happen on AIM affect how EPY is going to be priced in Australia.. or vice versa..

1. how many shares are listed on the ASX compared to AIM?

2. how many shares are there freely floating (this is one question I've yet to find the answer too.. i've tried but can't quite make out what this would be, i know that now 44% of the issued capital is held by simon loh given his sell down to the department connected with the malaysian government finance arm).

so that means the is a lot of freely floating stocks...

3. what about crossed trade, 2 2weeks ago we saw $1.7m dollar purchase in aussie dollars which was at around 41 cents and gave them some 4.2m shares.. who is this party .. any idea? is there someone accumlating..

4. simon loh given the 2nd quarter announcement made mention about the road show but has this materialised, he's not said a peep after this, i remember the first quarter that he did hit the road and it gave a little support.. hopefully he's going out soon and 2 quarters should be sufficient to get this happening..

5. i agree epy should be around 60cents aussie.. but heck there seems to be a lot of sellers but no buyers.. or they are shy.... last friday there was volume of 110 000 units..

if you can answer any of these questions i'd appreciate this...
 
the other thing is zztop

is there any links on UK articles or stuff on epy

its terrible in that in australia, a company that announces results like 140% increase first quarter and 277% increase second quarter doesn't even get a mention in the papers..

i think i'll do my bit on the local newspapers..
how is epy perceived in the media.. ? have the 2 quarter results been in the papers in the UK?
 
runlikehell...

FTSE Constituent AIM1 Epic EPY
Market Sector software & computer services Sedol B063187
Shares in issue (m) 190.755896 Isin AU000000EPY3
Market Cap (GBP m) 34.33 Address Level 7, 451 Pitt Street Sydney NSW 2000 Australia
PE Ratio 0 EPS
Dividend Yield 0 Dividend Cover
 
yeh' its is strange when a company has great results,and nowt happens...but the drag seems to be from your side...think it dropped nearly 10% on asx last friday...wonder why?
 
I dont currently have this stock but my dad holds them. Its only a matter of time till they are taken notice of. Investors will see the potential. As long as they continue to put out healthy messages you can be comfortable with your investment.

If I get spare cash or make a profit on one of my other stocks i'll definately consider investing in these.
 
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