KFC infrastructure upgrade will benefit ??? Read here!!

This very interesting stock is your must read, must see stock.

As you know in Malaysia, 2 most prominent fast food outlet is Mcdonald and KFC. In terms of IT infrastructure upgrade, Mcdonald is always leading, and KFC will then follow.

You might view that KFC is slow, but it is not too bad after all, because that gives you opportunity to capture the chance to earn money.

Why do I need to say this?

Firstly, all the KFC outlet in South East Asia is somehow related to QSR (QSR is the franchisee for KFC in south east asia). And all of KFC point of sales system is actually maintained by a company called Cuscapi.

So, if QSR rolled out an outlet upgrade for KFC that involved POS system, that would not only referring to the Malaysia branches, but South East Asia branches which is a lot.

So what is the upcoming attractiveness of Cuscapi moving forward with the latest move of acquisition on Servedby Alfred F&B system?

This complete system developed by the singapore based developer is very attractive to be utilized by Cuscapi to enhance their existing main customer - KFC, to be on par with IT infrastructure in food ordering system with Mcdonald.

I believe you guys already noticed this self service ordering kiosk in Mcdonald already. Unless you had not been visiting Mcdonald lately, then you should give a try on this kiosk. Very good and friendly to use, and payment is good through using wave. Good, clean and easy.

For this, KFC will be implementing this very soon, and that is the strong reason for Cuscapi to spend RM 7.6 million in buying Amplify Me. Pte Ltd which holds the technology and patent for the self ordering kiosk as well as POS cloud system.

This is the kiosk that is going to be deployed by Cuscapi soon at all the KFC outlet at South East Asia region

So what is Cuscapi prospect on this.

On Malaysia context, according to the QSR website, there is 1270 outlet

If 1 outlet upgrade will require RM 50k, complete overhaul + commission + testing + infrastructure upgrade and etc etc, that would be potential RM 63.5 million contract here.

But what about taking in KFC outlet in China, since China is also served by Cuscapi

So what is the prospect at China?

According to business insider, it is more than 5000 outlet. WOW!!!
https://www.businessinsider.my/most-popular-fast-food-chain-in-china-kfc-photos-2018-4/

According to Wikipedia, the total KFC outlet in China stands at 5910 outlet !!!

Now imagine if 5910 outlet also need to be upgraded with modern facilities

5910 x RM 50k = RM 295.5 million

That is quite a big prospect coming for Cuscapi, by paying RM 7.6 million to acquire Amplify Me Pte Ltd, Cuscapi is looking at generating sales revenue of potential RM 350 million in South East Asia + China.

Of course, RM 50k is my assumption, but this kind of main POS system related stuff, don't expect it to be too cheap, because it is the fore front running service. Even if discount another 30% off RM 50k average, you will still get approx RM 250million of potential business coming in.

That is why now Cuscapi at RM 0.21 is very attractive.

Do remember, the previous owner injected fund into Cuscapi at RM 0.25 for ordinary share and RM 0.35 for warrants exercised.

If want to invest, then invest fast fast. Not asking you to contra, but invest properly.

This Company Is Best Proxy Toward USD 10billion Unicorn - Grab

Dear all reader, investor and trader alike.

Today I want to introduce you a very high potential stock that is dealing with today technology, and also a part of the making of a super apps for human everyday life.

Last time got competition between Grab and Uber, now only left with Grab in the SouthEast Asia region. Grab is nonetheless known to all from young and old, and became a household name in a very short while in fact.

Grab started out in Malaysia, but got it's major funding in Singapore, and now is dubbed as the Unicorn start up in South East Asia that had a closed end market capitalization of USD 10 billion after their last successful fund raising from Softbank which includes investor such as Toyota, Hyundai, Yamaha, Microsoft, Bookings Holdings Oppenheimer fund and Ping An Capital.

Singapore’s Grab Get New Funding From Softbank $1.46B
https://theinsiderstories.com/singapores-grab-get-new-funding-from-softbank-1-46b/

Grab is now aggressively developing, upgrading and expanding it's services in South East Asian region. The ride sharing platform is now not only only ride sharing, but also e-Wallet and Food Delivery now.

With such great expansion with big capital pouring in to development the new eco-system of the future, this small little company in dealing in software development in Malaysia might be the closest proxy you can get your hands along now towards the growing development of Grab, and this company is Cuscapi.

Why is it Cuscapi ?

You might be wondering why it is a company such as Cuscapi can be linked with a rising Unicorn like Grab Holdings.

Summarizing it, Cuscapi had more than 40 years of experiences in F&B Point of Sales (POS) system. If you had ordered food before at KFC, Pizza Hut or Texas Chicken, that is the store front system that capture your order, send your order to the kitchen, do cash registering process and also put a queue number. Of course the system is also capable of a lot of others thing like inventory management which is not visible to customer.

Cuscapi had been expanding their footprint at South East Asia region, namely Malaysia, Phillipines, Indonesia, Singapore, Thailand as well as China.

http://www.cuscapi.com/clients/

So how is Cuscapi linked to Grab Food at this South East Asia region?

The battle of Go-Jek vs Grab

Here is what we can know about Go-Jek vs Grab from Jakarta Post
Full article https://www.thejakartapost.com/news/2019/03/07/food-versus-fintech-go-jek-grab-in-race-to-be-super-app.html

Go-Jek and Grab started their businesses by offering ride-hailing services in their respective home countries, taking different steps to attract consumers. Later, they expanded their services and became a duopoly in Southeast Asia.

In their race against each other to become the first "super app" in Indonesia, Go-Jek and Grab are increasingly similar in terms of their features but still noticeably different in their approach to the super-app status. 

Go-Jek focuses on pushing financial technology (fintech) with its Go-Pay e-wallet, while Grab concentrates on its GrabFood delivery service.

Go-Jek’s emphasis on fintech first became apparent when founder Nadiem Makarim confirmed in late 2017 that Go-Pay would become a spin-off the following year.“The plan is very clear. Go-Pay has an e-money license [from Bank Indonesia]. So our plan is to bring Go-Pay outside of the Go-Jek app,” he said.

On Summary - Go Jek focus on Go-Pay, Grab will focus on GrabFood delivery service.
In order for Grab to become the super-app that focuses on Food delivery services, it is undeniable that Grab will need to pour in more development fund into developing a app that encompassed the whole eco-system of F&B into the system. This is where Cuscapi can come into picture to help GrabFood to achieve this milestone.

What has the latest fund raised had to do with Cuscapi?

According to an exclusive interview with GrabFood regional head - Tomaso Rodriguez, the bulk of the fund raise in the in the latest series will be channel to GrabFood for expansion, and to make it GrabFood a super app

https://www.thejakartapost.com/news/2019/03/10/executive-column-grabfood-to-go-full-steam-ahead-armed-with-kitchens-funds.html

In order to become a super app, the app will be more insightful and can provide best selling product, pricing strategy and promotion. It will be integrated into the Grabfood app in the future. Since Grabfood do not have vast experience in the F&B eco system and POS system, it can leverage best with Cuscapi expertise in this area

The Cuscapi C360 Engage is a complete eco-system for the F&B business of the future
It is a comprehensive system that can link inventory, waiter app, back end, diner app, e-menu and kiosk, POS system, number queue, boss app as well as DELIVERY.

I believe this is what GrabFood is looking for in order to integrate into GrabFood app to become a super-app, the complete eco-system for the F&B business of the future, everything in an app.

Is there any potential evidence of testing?

Currently, the F&B business in Malaysia that is using C360 Engage system which also in GrabFood are as follow

And Singapore as follow

As you can see until now, there are a lot of solid link between the success of Grabfood to be linked with Cuscapi C360 Engage that is developed by the software team.

Will it come a day that Cuscapi system will be bought over by Grab Holdings from their huge chunk of USD 1.5 billion fund raise (equivalent to RM 6 billion) ? Give a 10% will be RM 600 million that can readily lift Cuscapi to 60 cents.

Or will Cuscapi form a strategic JV with Grabfood, and all participating F&B outlet in South East Asia will require to use this system? Do remember, Grab is focusing in South East Asia, and Cuscapi footprint is also South East Asia, meaning both are having the same growth path.

In the next few post, I want to share you why I feel Cuscapi is again heavily linked to the growth of Grab.

I have to tell you that I am invested in Cuscapi, at the current price, there is nothing much to lose as the new shareholder had pumped in more than RM 50 million in order to bring the company to life. However, this is not an article for you to do your buy,sell decision. Please consult your own professional adviser.

Berjaya Asset to unlock value from seabed

As we know, our Prime Minister Tun Mahathir is going to visit Beijing in the coming April to further discuss on some previous project that are on hold. One of the major one include ECRL which is around 20% done. There could be many other project that would be discuss and deals could be inked.

The recent move from China in buying almost USD 1 trillion worth of Malaysian palm oil product also signal a improving state of relation between Malaysia and China.

Notably, Chinese state-backed company have a very high exposure in Johor development, especially in land reclamation and project development. So if the current government is to improve trade relation between China, then Tan Sri Vincent Tan company will have a good chance this year.

If Malaysia and China relation become good again, then China will continue to invest in Malaysia, and bring in financial backing and construction power to build infrastructure.

Actually, BJASSET prized asset is a piece of land that had yet to be reclaimed infront of Berjaya Waterfront, which is situated at Stulang area.

According to latest annual report 2018, the land size sea bed for reclaimation is 25 hectare, which is around 61 acre.

This area is very strategic because it is very near to the link bridge to Singapore Woodlands, the most busiest check point.

In fact, the going to be reclaimed land is near Tanjung Puteri (also reclaimed), where it's high end condo is selling at RM 1500 per square feet, namely RF Princess Cove.

So how much is 61 acre of land worth at this area.

61 acre x 43560 = 2,657,160 square feet

2657160 sf x RM 700psf = RM 1.86 billion

That is no wonder Tan Sri Vincent Tan keep on acquiring his company share because of this golden asset. Do keep in mind that YDMM Sultan Ibrahim also have almost 13% direct stake in BJASSET.

So now, BJASSET market cap is only RM 767 million.

But the carrying asset is Berjaya Times Square, Berjaya Waterfront Complex and a piece of land yet to be reclaimed which can be worth RM 1.86billion

What will BERJAYA ASSET do with the land ?

My opinion is that, Berjaya Asset is likely going to partner with a Chinese stated back company to develop this land, from reclamation to development. Just like RF Princess Cove and Country Garden Forest City.

So hopefully this working visit, Malaysia and China ties will improve, and BJASSET will lock 1 deal with a Chinese company to do the work and unlock this RM 1.86 billion sea gem.