KUALA LUMPUR (Sept 15): Accounting software makers Censof Holdings Bhd, Asdion Bhd and YGL Convergence Bhd rose after analysts said such firms may see a boost in sales by clinching a portion of the estimated RM1.7 billion goods and services tax (GST)-compliant software market.
At 11:36 am, Censof was up 2.5 sen or 4.59% to 57 sen with a total of 12.06 million units changing hands. Asdion added 3.5 sen or 9.33% to trade at its day’s high of 41 sen with 118,300 shares transacted.
YGL gained one sen or 4% to 26 sen.
At 12.30pm, Censof and Asdion settled at 57 sen and 41 sen respectively. YGL changed hands at 26.5 sen.
Last Friday, MIDF Amanah Investment Bank Bhd said in a note it expected the software vendors “to enjoy brisk sales in anticipation of pent-up demand for GST-compliant software.”
“This would help to drive higher top and bottom line growth in 4QCY14 and/or 1QCY15. In turn, it could translate into better share price performance, hence, there may be short-term trading opportunities in the shares of these software vendors,” MIDF said.
The research house also estimated that the market size for the GST accounting software to be RM1.7 billion, after multiplying the assumed median software cost of RM6,000 and the approximate 285,000 companies that have yet to register with the Customs.
However, it should be noted that there are now more than 100 accounting software vendors competing for the market share, from 56 earlier.