AsiaFIN - Fintech Growth in Asia and Beyond - See initiation note

Rhea-AI Summary

ACF Equity Research has initiated coverage on AsiaFIN Holdings Corp. (OTCQB:ASFH), a fintech solutions provider in ASEAN. ASFH offers Robotic Process Automation (RPA), Regulatory Technology (RegTech), AI-driven cheque processing, and ESG reporting services. The company is pursuing aggressive growth through organic expansion, partnerships, and acquisitions, with plans for a senior exchange uplist.

Key highlights:

• ASFH serves 20 RegTech financial institutions, >60 banks, and >100 corporations
• Gross margins of 35%, expected to rise to >50%
• YE23A revenue of US$3.1m with positive free cash flow and US$115k earnings before tax
• Projected 3x revenue increase and 11x EBITDA increase by 2025
• Large market opportunities in digital payments, RegTech, and RPA in Southeast Asia

Positive

• Planning for senior exchange uplist, potentially increasing liquidity and visibility
• Strong client base with 20 RegTech financial institutions, >60 banks, and >100 corporations
• Positive financial performance with US$3.1m revenue and US$115k earnings before tax in YE23A
• Projected 3x revenue increase and 11x EBITDA increase by 2025
• Gross margins of 35% expected to rise to >50%
• Operating in fast-growing ASEAN fintech market with large addressable opportunities

Negative

• Current lack of stock liquidity due to restricted shares
• Aggressive growth strategy through acquisitions may carry integration risks

KUALA LUMPUR, MALAYSIA / ACCESSWIRE / October 17, 2024 / ACF Equity Research

FROM ACF EQUITY RESEARCH FINANCIAL SERVICES TEAM

OTCQB:ASFH - Planning for Senior Exchange Uplist

READ ACF EQUITY RESEARCH'S INITIATION NOTE HERE

READ ACF EQUITY RESEARCH'S RELATED CORE INVESTMETN CASE HERE

ACF INITIATION NOTE: AsiaFIN Holdings Corp. (OTCQB:ASFH, planning for a senior exchange uplist) - an aggressive growth inflection point has been created by management's new strategy. ASFH provides IP protected fintech solutions to ASEAN (the fastest growing fintech adoption region). ASFH delivers Robotic Process Automation (RPA) using Intelligent Character Recognition (ICR); Regulatory Technology (RegTech); AI driven cheque processing and; ESG reporting services. ASFH is combining organic growth, partnerships and aggressive acquisition growth to expand both within ASEAN and in new westward territories. Clients - 20 RegTech financial institutions and >60 banks and >100 corporations. The fastest global growth in digital payments, RegTech and RPA are within the Asia Pacific region in which ASEAN, and so ASFH's home markets, are located.

ASFH's stock lacks liquidity because much of it is currently restricted prior to the senior exchange uplist that ASFH is planning - none of the shareholders holding the remaining 8.2% effective free float seem to want to sell prior to a senior exchange uplist. Large market opportunity - ASFH caters to three main segments - Payment processing, RegTech and Robotic Process Automation, known as RPA - all of which present large addressable market opportunities. These segments are part of the processing systems for Fintech transactions and so will inevitably benefit from Fintech adoption growth, in our view.

• The digital payment market in Southeast Asia is projected to reach US$ 2trn in transaction value by 2030.

• The global RegTech market is expected to reach US$ 20bn by 2027 (CAGR of 19%).

•The global Robotic Process Automation Market (RPA) could touch US$ 30.8bn by 2030 (CAGR of 38.2%). ASFH has gross margins of 35%, which we expect to rise to >50%.

Strong financial performance as ASFH moves through a key inflection point: Following the 2023 acquisition of StarFIN Holdings, renamed as Insite MY Holdings, ASFH reported revenue of US$ 3.1m YE23A, along with a positive free cash flow and US$ 115k earnings before tax. We expect revenues to increase 3x and EBITDA to increase nearly 11x by 2025

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DISCLOSURES: ACF Equity Research has received cleared funds in advance for a minimum one year service to provide independent investment analysis directly from either of an issuer, from an exchange, from a portfolio manager; from an investor group. ACF Equity Research has received for any of investment/equity/credit/ESG/sustainability research a fixed, paid in full, in advance, annual fee in the range US$35,000 to US$75,000 - service package dependent.

-END-

For inquiries or further information, please contact:

AsiaFIN Holdings Corp.
Wong Kai Cheong
CEO
kcwong@asiafingroup.com

SOURCE: ASIAFIN HOLDINGS CORP

View the original press release on accesswire.com

FAQ

What is AsiaFIN Holdings Corp.'s stock symbol?

AsiaFIN Holdings Corp.'s stock symbol is OTCQB:ASFH.

What services does AsiaFIN Holdings Corp. (ASFH) provide?

ASFH provides Robotic Process Automation (RPA), Regulatory Technology (RegTech), AI-driven cheque processing, and ESG reporting services to clients in the ASEAN region.

What was AsiaFIN Holdings Corp.'s (ASFH) revenue for YE23A?

AsiaFIN Holdings Corp. reported revenue of US$3.1 million for YE23A.

What are AsiaFIN Holdings Corp.'s (ASFH) growth projections?

ASFH is projected to increase revenues 3x and EBITDA nearly 11x by 2025, according to the ACF Equity Research report.

Is AsiaFIN Holdings Corp. (ASFH) planning to uplist to a senior exchange?

Yes, AsiaFIN Holdings Corp. (ASFH) is planning for a senior exchange uplist, which could potentially increase stock liquidity and visibility.