XOX Hot Stock Tomorrow with RM1 Billion Micro-Financing Deal in Hand

Assalamualaikum dan salam sejahtera

XOX Hot Stock Tomorrow with RM1 Billion Micro-Financing Deal in Hand

XOX Hot Stock Tomorrow with RM1 Billion Micro-Financing Deal in Hand | XOX Bhd, one of the top e-wallet licence holders in Malaysia has formed a partnership with Wetek Technology (M) Sdn Bhd to offer up to RM1 billion in micro-financing to small business owners and entrepreneurs. The company has signed a partnership agreement with Wetek, whose directors are no ordinary individuals, namely Liang Zeng and Howard Leung.
  
Wetek has committed RM1 billion for the micro-financing deal with XOX. According to the New Straits Times (NST), both the companies may issue a second tranche after the successful take-up of the initial RM1 billion. Micro-finance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. The business in Malaysia is growing in this segment as the regular banks are not lending or making it harder for SMEs to get financing for expansion. 
  
The NST qouted XOX CEO Ng Kok Heng stating that the company is moving into this direction to provide entrepreneurs and small business owners access to capital and expand their business. No other Bursa-listed companies have undertaken this initiative and this makes XOX a true hero in the eyes of investors.
  
XOX will ride on its 2.2 million customer base for the business and we do know the customer base is growing everyday thanks to the wonderful plans launched by XOX to help customers through these current challenging times.

XOX had a year ago proposed a rights issue with free warrants to raise up to RM66 million to fund its e-wallet and electronic SIM (e-SIM) businesses expansion. The company had allocated RM33 million of the proceeds raised from the rights issue to expand its e-wallet function by developing a new mobile application to support micropayments, the issuance of Mastercards and peer-to-peer e-money transfers. Some RM15 million was set aside for its e-SIM expansion as an alternative to the traditional SIM cards.


In a filing with Bursa Malaysia, Leung Hao, who is also chairman and CEO of Brilliant (Hong Kong) Holdings Ltd said the company formed a partnership with XOX to ride on the latter's strong subscriber base. He said that apart from over 2.2 million subscribers, XOX has strong infrastructure in its dealership channels and technology to grow the relatively unserved market in Malaysia.

Wetek director Liang Zeng
"This is a huge opportunity for Wetek to grow in this business," he said. Globally, the microfinance industry had serviced 139.9 million borrowers in 2018, and 65 per cent of microfinance borrowers live in rural areas where traditional banking and lending is difficult or impossible. 
  
According to Microfinance Barometer 2019, this industry has been growing at an annual rate of 11.5 per cent over the past few years and projected to reach US$146.8 billion by 2021, he said. "Micro financing is a good strategy to populate eWallet with funds especially in the challenging environment of eWallet adoption nationwide. Once eWallet subscribers have money in the ewallet, they can perform transactions through XOX Digital ecology," said Leung Hao.

Wetek director Howard Leung
Leung Hao said Wetek is targeting to be the market leader of micro-financing in Southeast Asia and will use its partnership with XOX as the launch pad.  Meanwhile, XOX's revenue and bottomline will improve with this micro-financing deal.
  
The stock is also expected to surge following this news as it involves a RM1 billion plan to help Malaysians succeed in their business ventures. XOX rose to 12.5 sen today with 622 million shares traded.  It closed 10.5 sen. Keep a watch out tomorrow for this stock.  I am no analyst but I would recommend a "BUY" on this stock.

The other director of Wetek is Liang Zeng, who is an internet entrepreneur and venture capitalist. Liang Zeng invests and incubates the companies in digital marketing, artificial intelligence and enterprise services.

He has held senior positions as senior vice-president (VP) of Kingdee International Software Group, VP of Microsoft Greater China, and most recently, VP of Baidu Inc. and chief executive officer of Baidu Nuomi.

Currently, he serves as board director and strategic advisor for multiple digital marketing and technology companies.

  Happy trading!

THE END

No comments:

The author will not be responsible for any comment left by the readers. Please comment using polite language. Thank you.


Powered by Blogger.