CUSCAPI TO BENEFIT ON GST IMPLEMENTATION - GST CAN BE DELAYED, BUT CANNOT BE DENIED

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With Malaysia growing debt in the short term, it is crucial for the current government to address the government debt issues in order to keep the country's debt in control. While Malaysia still has a few options in order to increase government tax collection, and one of the more effective and efficient tax collection method could be the GST.

GST best way to increase revenue, World Bank lead economist tells Malaysia (theborneopost.com)

Citing on World Bank's lead economist comment on Malaysia option to increase government revenue, the GST is one of the best options for the country. A lot of developed country had adopted GST as it is a proven method to collect tax in a more effective manner.

GST is able to tax the untaxed category that is making a living and staying in Malaysia. That will include foreign workers which is more than 2 million of peoples.

About 2.1 million foreign workers in Malaysia as at June 2022, says Statistics Dept | The Star

If we put in a GST rate of 4%

2 million foreign workers with each spending RM 1,500 a month on GST items.

2,000,000 x RM 1,500 x 4% = RM 120,000,000 per month GST collection

1 year

RM 120 million x 12 = RM 1.44 billion

The above is just an example on how GST can help government to get more revenue.

Malaysia had learned a lot from the 1st implementation of GST. One of the major challenges is the GST filling and GST refund.

In order to streamline this process and minimized human error, and reduce the time needed for GST refund, it is suggested that the GST eco system should be connected directly to the Kastam server for live data feed in.

1. This will eradicate malpractice of business owner doing business with 2 set of revenue (a real revenue and a edited revenue for submission)

2. It will also cut off the process of using human to key in GST data into government server every quarterly, which is waste of time and prone to error.

3. It will also enhance GST refund process to the vendors and suppliers.

CUSCAPI - A PIONEER AND PROMINENT PLAYER IN THE F&B INDUSTRY POS SYSTEM

CUSCAPI is an established player in the F&B industry POS system.

With client spanning across South East Asia, the company is set to see more client in the future with the implementation of GST.

At the current price of CUSCAPI, can the share price rose again towards it's recent peak at RM 0.45?

Next on will share with you on my views on CUSCAPI AND GST - WHAT IS THE POTENTIAL BUSINESS MODEL.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

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Invest in the potential FANG of KLSE !!!

To all legendary investor and trader of KLSE

This message is crafted to you in order to let you know what are the instrument that billionaire and multi millionaire used to bring in huge wealth in a decade.

In the past, massive wealth is created through brick and mortar business. For example, real estate is one of the instrument that a lot of people used during those days to attain massive wealth. Yes, I do not disagree with this, but it takes quite some time. Other businesses such as oil and gas, manufacturing business are also good as well, but to date, the largest corporation in terms of market capitalization are mostly made out from IT / Technology company.

The latest line up are Facebook, Amazon, Apple, Netflix, Google.

It used to be a fight between Warren Buffet and Bill Gates in the top 2 position, but to date, this had changed. Now it is Mark Zuckerberg of Facebook, and Jeff Bezos of Amazon (before divorce settlement) that rise up so quickly to dethrone the legendary.

Technology is the key forward, and this is just a start, especially for Malaysia. There are a lot of things that can be improved with application of technology, or being replaced by them as well. The application is technically have a wide scope.

Now Cuscapi is one of the potential target that legendary investor should take note. This company is not just another Tom Dick and Harry, but it is backed with track record management that brought up MyEG from a mere RM 200 million company to a RM 5.5 billion company to date.

The Cuscapi that we know is of the yesteryear story. Please delete away your mindset that Cuscapi is the company producing those Rev Tablet for food ordering system.

Now Cuscapi is moving way faster than you think.

Cuscapi is still involved in Food & Beverage POS system, and additionally, they are developing a system for automotive segment.

If you see, Cuscapi got this EDMS system that links some of the process that is previously done manually into a systematic manner that will ease the process and also reduce fraud.


Bonus info

Previously, I got mentioned about Cuscapi being linked with Grabfood expansion. While some see a potential on it, some also doubted it.

If you looked carefully, 1 of the executive director of Cuscapi is Mr Toe Teow Teck. He is a Singaporean and formerly worked in a private equity NTU Venture in Singapore and also an angel investor himself. To link this up, Grab is actually a Malaysian startup that went to Singapore to get funded and become to the Grab that we are seeing to day.

Since the private equity / incubator / startup funding is a niche market, there is high chance that Mr Toe also have network that is related to the funding of Grab at the initial stage.

The latest move on Cuscapi acquiring a Singapore based food ordering POS system (Amplify Me Pte Ltd) continue to underline the prospect of Cuscapi having more corporate exercise related to Singapore based company.


Let you put this to thought

1. Grab is dealing with Car / Transport + Food, while Cuscapi is dealing with Food Ordering System and Automotive related registration with government.
2. Executive director is Singaporean, and involved in startup funding, angel investor, private equity funding
3. Both Grab and Cuscapi having the same geographical growth - South East Asia market

So now, do you see a definite link between the 2 company ?

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.