Stocks in focus
A NUMBER of public-listed companies are said to be linked to the proposed new immigration system.
On the losing end of the spectrum is Prestariang Bhd, which has seen over RM400mil being wiped out from its market capitalisation since the May 9 change in government and the cancellation of the Sistem Kawalan Imigresen Nasional (SKIN) project.
The border protection control system was one of Prestariang’s key projects.
At the other end, other stocks seen to be linked to the proposed new system seem to be generating market interest. They are HeiTech Padu Bhd, Orion IXL Bhd and Green Packet Bhd.
HeiTech Padu is the incumbent provider of the current Immigration Department’s Malaysian Immigration System (MyIMMs). In October 2017, it won a three-year extension contract to maintain and service the same system for RM42.43mil.
The information technology services provider, which had fallen off the investors’ radar screen for years, saw its shares surge last month after it said it was entering the lucrative e-government space.
Days after that, the company announced two new government-related jobs in quick succession. One was a three-year contract of RM33.18mil to supply critical care information system in intensive care units for 11 government hospitals, while the second was a RM14.4mil two-year contract from the Inland Revenue Board to renew the software licence for the board’s mainframe systems.
Indications are that HeiTech Padu is in the running to either be the new white knight to rescue project SKIN or bid in the open tender for the new MyIMMs Global system, if the government takes that route.
As for Orion IXL, the Ace Marketlisted stock began to see investor interest late last year after it had inked a deal to develop a loan application system for MyAngkasa Holdings Sdn Bhd.
The company has been dubbed a “fintech giant in the making” by CIMB Research.
For now, the company when contacted said that it is not participating in any way in the Immigration Department’s proposed new integrated immigration system. “But if there is an opportunity, the company would like to,” Orion IXL chief executive Mohamad Shaharul tells StarBizweek.
Green Packet, meanwhile, is believed to be seeking a role in teaming up with Retirement Fund Inc (KWAP) to “rescue” the SKIN project.
According to sources, Green Packet is banking on its technology knowhow and execution capabilities in its pitch to work with KWAP, which held a 13.02% stake in Prestariang prior to the 14th general election. The fund has steadily reduced its stake in Prestariang to about 5.27% now.
Green Packet, which saw some active buying of its shares this week alone, had yet to respond to our queries as at the time of writing.
Years after hiving off its mobile telecommunications business to Telekom Malaysia Bhd, Green Packet has begun a digital transformation journey to reinvent itself as a provider of much-needed, digital-related services in the market.
The company recently said it is beginning to reap the rewards of those efforts. The cash-rich company is said to be looking to be the technology partner to KWAP in the much-talked-about rescue of the SKIN project, and is in a position to provide funding for the initial period of the project, sources say.