REXIT- Research (2019)

on

Counter : REXIT - 0106

Market : KLSE

Background :

Rexit are company that focuses on delivering solutions and services to the Financial Services sector particularly the General Insurance industry.

Company major product :
  • e-Cover – Enabling online insurance transactions
    • - SaaS model for web based solutions which provides an on-line system for insurance companies and their intermediaries. Currently e-Cover system also adopted by Singapore, Thailand and Hong Kong.
  • e-PPA – Enabling online unit trust investment through EPF
    • - SaaS model to include the Malaysian unit trust industry following our appointment by the Federation of Investment Managers Malaysia ("FIMM") as the third party administrator for electronic submissions by their member companies to the Employees Provident Fund ("EPF")
  • InfoGuardian – Enabling online legal documentation
    • - Saas model that include integrated workflow, case management and document management system specially designed for the financial and legal services industries, to provide and facilitate an on-line information sharing environment for multiple users within and outside customer organizations
Saas Model (Software as Service) :
  • A kind of "Pay per use" basis. Benefit to clients is they no need to paid huge initial cost for the solution but have to paid per user basis.
  • Benefit to Rexit:
    • - Recurring and scalable income: server and infra cost is fixed, however profit can spike up if user count increase.
  • Risk to Rexit:
    • - Also the user count. If user count is lesser than the cost of server and infra. Loss incurred.

Strength :

  1. Low Debt
    2. - So far no debt observed on Rexit as of 2019 Report.
  2. High ROE (Return on Equity) and High (Net Profit Margin)
    3. 2015 (%) 2016 (%) 2017 (%) 2018 (%) 2019 (%)
    ROE 18.3 % 22.5 % 23.5 % 23.2 % 22.2 %
    NPM 31.3 % 36.4 % 36.7 % 36.0 % 34.7 %
  3. Strong cashflow & stable dividend paid
    4. Year Free Cash Flow(RM,000) Dividend Paid(RM,000) DPS (cent)
    2015 1,916.9 2,717.4 1.5
    2016 9,694.5 3,585.1 2.0
    2017 7,709.0 5,365.0 3.0
    2018 8,371.7 5,356.6 3.0
    2019 5,565.2 5,333.4 3.0

    *The cashflow fluctuated from 2015 - 2019 because this company consistently paid Dividend.


Annual financial data:

Income Statement:
Revenue 2015 2016 2017 2018 2019
Revenue(RM,000) 17,001 18,843 20,575 21,835 22,722
Revenue yoy growth(%) 41.8 % 10.8 % 9.2 % 6.1 % 4.1 %
PBT(RM,000) 5,816 8,838 9,837 10,268 10,512
NP(RM,000) 5,323 6,857 7,549 7,857 7,890

Revenue Segmentation by Region:
Region 2015 2016 2017 2018 2019
Malaysia(RM,000) 14,205 15,741 16,421 17,388 18,414
Hong Kong(RM,000) 2,589 2,589 3,535 3,979 3,441
Others(RM,000) 206 513 618 466 866

Disclaimer : This post is for record and research Purpose. Not Buy and Sell Advice. Please do own study before making any purchase decision.

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