For traders in search of a small float play showing some new upside momentum, Kinerjapay Corp (OTCMKTS:KPAY) is one to check. The stock leapt higher on Wednesday following a strategic move in the SE Asian market space. That momentum broke it back above the dollar level on a major burst in volume.
Fueling the action, the company just announced today that it has signed a Memorandum of Understanding (MoU) agreement with PT. Mitra Distribusi Utama (MDU), a mobile prepaid top-up provider in Indonesia, to acquire MDU’s business units as well as to prepare future expansion plan on its current business model. According to the release, the combined businesses “could exceed $70 million in sales in 2019”.
Kinerjapay Corp (OTCMKTS:KPAY) bills itself as a company that entered into a license agreement on December 1, 2015, with PT Kinerja Indonesia, an Indonesia entity controlled by Mr. Edwin Ng, the company’s Chairman, CEO, and controlling shareholder.
Under the license agreement, the Company was granted an exclusive, worldwide license to use and commercially exploit the KinerjaPay IP and its website, KinerjaPay.com, an e-commerce platform that provides users with e-wallet service for bill transfer and online shopping and is among the first portals to allow users to top-up phone credit. On December 1, 2016, it announced the launch of a new dedicated marketplace, http://www.kinerjamall.com as part of a plan to establish KPAY as a leader in the growing e-commerce industry in Indonesia and SE Asia, which represents a largely untapped opportunity.
KPAY has also launched KinerjaMall, with additional features such as KinerjaGames, as well as KinerjaTravel, to be launched shortly. The Company also continues to demonstrate growth in the number of users depositing funds through the platform, with approximately 2,600 deposits in the quarter as compared to 1,133 deposits in the first quarter, according to information about the company put out at the end of 2017.
According to company materials, “KinerjaPay enables consumers to ‘Pay, Play and Buy’ through its secure web portal and mobile applications. Based in Indonesia, the Company provides easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company’s services are available through its mobile applications and on its website at http://www.kinerjapay.com.“
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Traders will note 66% tacked on to share pricing for the listing in the past week, but this action is running counter to the larger trend in the name.
In addition, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed greater than 200% above the average volume levels in play in this stock over the longer term, which is particularly important given the tiny float of just 3.2 million shares.
According to Mr. Edwin W. Ng, Chairman and CEO of KinerjaPay Corp., “This is the moment we are all waiting for, KinerjaPay will transform into a major player in Indonesia’s mobile prepaid top-up industry”.
The Company’s CEO of PT. Kinerja Pay Indonesia, Mr. Deddy Oktomeo, also commented: “Achieving the transaction level of over 2 million transactions quarterly will allow KPI to achieve significant profitability as well as reach a sales level of over $70 million per year. We fully expect to migrate these users to all other KinerjaPay product offerings and allow significant growth beyond 2019”.
At this time, carrying a capital value in the market of $13M, KPAY has a stash ($310K) of cash on the books, which is balanced by about $788K in total current liabilities. One should also note that debt has been growing over recent quarters. KPAY is pulling in trailing 12-month revenues of $1.9M. However, the company is seeing declines on the top-line on a quarterly y/y basis. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $KPAY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $KPAY, either long or short, and we have not been compensated for this article.