KUALA LUMPUR (April 18): CIMB IB Research has initiated coverage on Orion IXL Bhd at 17 sen with an "Add" rating and a target price (TP) of 33 sen and said Orion plans to turn around from net loss in FY6/18 by diversifying into fintech for end-to-end microloan applications and AI credit engine platform.

In a note April 17, CIMB Research said if successful, it estimates this could lead to significant improvement in Orion’s net profit to RM14.4 million in FY21F.

“We initiate coverage on Orion with an Add rating and TP of 33 sen in view of the earnings growth potential from its new fintech business,” it said.