Kinerjapay Corp (OTCMKTS:KPAY) is showing signs of staging a comeback, after losing a substantial amount of market value in the first quarter. After plunging to lows of $0.5 a share, the stock has bounced back, on rallying by more than 100% to the $1.12 handle.
The upward momentum has been driven a by a string of positive development that continues to affirm the company’s ability to generate long-term value. Revenue growth prospects are the latest catalyst, strengthening investor confidence in the stock.
While the stock is still trading in a downtrend, a reversal in the direction of trade could be in play. The stock needs to rise and close above the $1.40 level, to reaffirm the emerging uptrend. A close above the $1.40 handle, could see the stock make a push for this year’s highs of $2.20 handle.
Taking into consideration, the long-term downtrend, the stock could drop to the $0.50 handle on failing to hold on to gains above the $$0.80 mark.
In our view, a turnaround appears to be in play, given that the company’s fundamentals seem to have strengthened in the first quarter. Before we carry out a detailed analysis of the catalysts behind the recent upward momentum, let’s look at what the company does in pursuit of growth and shareholder value.
KinerjaPay casts itself as a digital company running a secure web portal and mobile applications. The Company provides an easy and convenient payment solution for shopping online. With the solution, people can make payments for such things as credit card bills, utility, phone bills as well as healthcare Insurance. The payment solution can also be used to send and receive money.
The company is also planning to expand its footprint into the gaming business in pursuit of new opportunities for growth.
In addition, the company is planning to leverage the capabilities of blockchain technology to transition its electronic payment platform into a token payment platform.
Why is KinerjaPay Climbing High?
KinerjaPay has been trending up, in recent weeks, on announcing a 691.6% increase in total transactions handled by its digital payment and e-commerce platform. Total Gross Revenue in the first quarter grew by 728.5%, affirming the company’s revenue generation capabilities.
In the first quarter, the company registered 29,321 online transactions driven by sales on phone top-ups as well as social insurance, utility bills, water bills and phone bills. Revenue in the quarter totaled $252,486.
“Our revenue has increased, our business is growing at steady rate at the beginning of this year. We are looking to hire more staffs for expansion. It is very important for us to gain more and more trust from our customers. This achievement will be nothing without their trust to us. We definitely want to grow together with them,” said CEO, Edwin Ng.
In a bid to accelerate the revenue growth momentum, KinerjaPay has embarked on an expansion drive as it looks to pursue more opportunities in South East Asia Marketplace.
In addition, the company has also unveiled new payment features on its digital payment solution. The feature will allow the company to handle more transactions from Bank Mandiri, the biggest state bank in Indonesia.
The bank has 2,457 branches in the country and employs about 36,737 workers. The new feature will allow customers enjoy fast transaction speeds without having to wait for manual confirmation from the bank.
KinerjaPay has also moved to diversify its business empire as it looks to strengthen its streams of revenue. The company has inked a partnership with Ace Legends Pte, for the launch of a new game dubbed Floo.
Floo is a multi-player survival game that lets players compete against each other.
“By creating interesting games, I believe we will also be able to introduce players to our traditional services. I anticipate that we will reach 45,000 new users with Floo, and this will be an important milestone for KinerjaPay as we continue to expand our brand recognition in the market,” said Mr. Edwin.
What Next For KinerjaPay.
It goes without saying that KinerjaPay is headed in the right direction as it continues to execute on its business strategy. Revenue growth in the first quarter provides a glimpse of what investors should expect as it continues to monetize its digital payment platform.
Recent gains in share price have come on growing investor confidence about the company’s revenue generation capability, the key to generating long-term value. That said, the management needs to continue executing on the strategic plan that helped grow total gross revenue by 728.5% in the first quarter for the company to remain a darling of Wall Street.
There is a high chance that the stock will continue climbing up the charts on improving fundamentals and selling pressure losing momentum.
Disclosure: We have no position in KPAY and have not been compensated for this article.