2020 expected to be a defining year for TFP

TFP chart

Earlier this week on 13 January 2020, TFP Solutions Berhad’s share price touched a high of 10 sen, after generally fluctuating between the range of 4.5 sen to 6.5 sen for the past three months.

The share price closed today at 8 sen, giving the stock a market capitalisation of RM16.64 million. For the past 52 weeks, TFP’s share price moved between a high of 14 sen and a low of 4 sen.

That said, 2020 is expected to be a defining year for the company.

Ten months ago, it sold its loss-making wholly owned subsidiary Tech3 Solutions Sdn Bhd for RM7.90 million cash. Tech3 is principally involved in providing enterprise system solutions.

Its revenue has been decreasing over the years from RM60.06 million in financial year ended Dec 31, 2016 (FY16) to RM58.84 million in FY17 and RM33.57 million in FY18, due to lower sales of servers as organisations move towards cloud technology instead of setting up their own ICT infrastructure.

Mid-last year, the company announced that it has inked a product co-branding agreement with mobile virtual network operator Tune Talk Sdn Bhd to promote and market the latter’s product and services through TFP’s co-branded mobile fintech product, OneCALL.

OneCALL, which targets the “un-banked” population (people without bank accounts) in Malaysia, contains unique features such as remittance, virtual ATM, game PINS, Lifestyle tools, Bill Payments together with B40 entrepreneur programme.

TFP’s role is to market, promote and sell Tune Talk services comprising sim cards, service subscription terms and conditions, packages, plans, peripherals, materials, online appearances under the company’s brand name, logo and trademarks. TFP said the agreement is expected to contribute positively to its future earnings.

Its management, in previous media engagements, have expressed that TFP’s future lies in the area of mobile fintech through OneCALL.

The company estimates that some two million Malaysians, representing 8% of the country’s 24 million adults, do not have any bank account.

In addition, some 66% of foreign workers in the country also do not have banking facilities. Studies done by the TFP Group indicated some 2 million Bangladeshis, a million Indonesians and 800,000 Nepalese currently residing throughout Malaysia.

The idea is also to have plantation, construction, mining and manufacturing companies and restaurants dependent on foreign labour incorporate TFP’s human resources management (HRM) and payroll system with eWallet into OneCALL.

Hence, it is critical for TFP to deliver on its vision of mobile fintech for the year ahead.