End-to-end payment solutions provider GHL Systems Bhd, which was transferred to the Main Board on Feb 15, will leverage on the 2008 Beijing Olympics to further expand its presence in the China market.
Its group managing director Tay Beng Lock said GHL was well-positioned to take advantage of the anticipated increase in demand for payment terminals and the solutions due to the Olympics.
“In China, the market is huge with the government planning three million terminals by Olympics 2008. Now there is only less than one million (terminals),” Tay said.
To a question, he said GHL would have no problem coping with the demand as it would be an original equipment manufacturer. “We only provide the technology component, designs and all that,” he added.
Speaking to reporters after GHL's transfer to Main Board in Kuala Lumpur on Feb 15, its deputy group managing director Yeng Fook Hoo said: “In China, nine to ten months ago, overseas players like us were not allowed to go in. Only very recently.”
“We are the first overseas non-bank player to play in this game (in China),” Yeng added.
Overseas contribution to GHL's revenue has been increasing over the years from about 11% in 2005 to between 15% and 20% last year.
“We want to speed it up. We want overseas (contribution) to exceed 50% (of revenue). We hope it (will occur in) 2009,” he said.
GHL has a direct presence in Bangkok, Beijing, Hong Kong, Kuala Lumpur, Manila and Singapore.
On the reason for the transfer from Mesdaq to the Main Board, Tay said: “Particularly with ventures in overseas, there is a requirement of substantial capital in time to come, where a Main Board company will have a more cost effective fund-raising.”
“GHL is the only company that migrate straight from Mesdaq to Main Board based on a profit track record of five years of over RM30 million,” Tay added.
On its investment in research and development (R&D), Tay said the company had been quite aggressive and invested about 5% of its revenue to R&D.
GHL closed three sen higher at RM1.18, with a total of 2.4 million shares done.
