quite pricey but its a good asset. getting 24 MT/ hectare shows it is well managed. better to buy post IPO when it is 40+ sen. Even United Plantations doesn't command 20x PE

sorry to those who bought high yield YNH Perpetual bonds. Banker's favorite thing to sell the past few years. Now as good a toilet paper.

50c coming...if more than 15m profit this q the new high base profit is proven

malaysia going downhill. im not even a shareholder. no balls decision making by the govt. burn all our tax money instead of admitting the issue and allowing non bumi to fix it.

insider news who would share here?! his info from his backside

agree with @joelyk buy and hold. contra trader don't play

good response from management and time for a rebound. business is good

yes even 10 PE is conservative. on good year maybe more like 15 PE

above 0.50 by end July is possible

Key takeaways from the meeting
• Deeper penetration into the fast growing Philippines market from existing
clients. RGB supplies gaming machines to all the four large casinos in
Entertainment City, which made up 80% of 2022 casino GGR in the Philippines.
It has also secured deals (2500 machines) with Solaire North, which is scheduled
to open in 2H23. Bloomberry has also revealed its third casino to be in Cavite.
Most new casinos are looking to order 2k new machines and RGB hopes to
capture the new orders, given its exclusive distribution rights and after-sales
service technical support.
• Next replacement cycle is near. Slot machines are typically depreciated over 5-8
years and casinos typically change their machines when the older machines start
dragging the floor. The last time when Philippines casino operators retired their
older machines widely was 6-8 years ago and it is near the next replacement
cycle. Moreover, PAGCOR announced that it would improve the technical
standards for electronic gaming machines (EGMs). Once finalized and approved,
these technical standards would be used for all EGM manufacturers and casino
operators prior to importation and deployment of machines on the gaming floor.
As borders reopen, and a new cycle of equipment upgrade sees regional casinos
incur 2023 capex higher than pre-Covid, RGB hopes this could potentially
increase its orderbook.
• RGB to benefit from new casino operators in the Philippines. International
Entertainment Corporation (1009 HK) received a provisional license for Manila
and it is scheduled to open in 2024/25. It has decided to purchase 382 slot
machines from RGB to expand their use in its Manila casino. Meanwhile,
Suntrust is opening another casino in the Philippines too. RGB’s addressable
market has also expanded with the introduction of PIGO, whereby operators
could offer remote access gaming via slot machines in their properties, thus
further increasing demand for gaming machines.
• Strong demand from markets outside the Philippines. RGB is expanding
preventive maintenance with major customers, such as Genting Malaysia and
possibly in the Philippines. Meanwhile, Thailand and Vietnam could be the next
targets, as the countries are pushing to set up new casinos. RGB is also looking to
penetrate into Japan and the UAE.
• Signed distributorship for Modulus Casino Management system and supply
of hardware. RGB is inventing the systems for the Asia market and currently
testing the systems across TSM sites in Asia. It is looking to roll out potentially
2000 slot machine systems in 2023 and 2024. This could allow RGB to earn from
both the manufacturing services and royalty fees.
• Further cost optimisation. RGB’s marketing expenses have historically
accounted for c.50% of its gross profit, thus eroding profitability. But 1Q23 saw
such expenses fall to 39% of gross profit. RGB stated it will be more stringent on
cost controls to drive returns, especially after its recent management changes.
• Net-cash since 2015 and strong FCF generation, alongside aggressive debt
repayment. RGB has reduced its borrowings and has been a net-cash company
since 2015. It paid off debts from FY19 to FY22, the COVID-19 pandemic years.
As of 1Q23, RGB had no debt and the RM101mn net cash (23% of market cap)
implies 14% FCF yield.

RGB International
Hoping to ride Philippines's gaming boom - Company
Visit Note 14 June 2023
RGB distributes gaming products, such as slot machines and baccarat, to casinos
and resorts in the Philippines (73% of FY22 revenue) and Malaysia (27%). It has
large exposure to the potential US$10bn GGR market in the Philippines, as it is
the distributor for two main slot machines suppliers (Light & Wonder and
Aristocrat) in the Philippines. FY22A FCF yield was 14% and it has been net-cash
since FY15. 1Q23 net cash of RM101mn is 23% of current market cap. RGB has
rallied 50% YTD (vs. KLCI -8%) and trades at 1yr forward P/E of 9.5x and 8.5x
on ex-cash basis.
• Exclusive distributor in growing addressable market. RGB hopes to benefit
from the casinos scheduled to open in the next few years as well as from the
privatization of 41 casinos by the Philippines gaming regulator (PAGCOR).
Coupled with the introduction of PIGO, which offers remote access live via slot
machines for the domestic market, Philippines’s GGR is estimated by GCG
Gaming Advisory Services to grow from the current US$3.3bn to US$10bn by
2027. New casinos and integrated resorts have been in talks with RGB to either
purchase or lease their machines as RGB is the exclusive distributor for the
popular gaming machine Light & Wonder (LNW US) and Aristocrat (ALL AU).
These brands dominate 70% of the gaming machines in the Philippines. RGB
also provides turnkey technical set-up for new venue, which made up 35% of
group revenue.
• Strong orderbook pipeline, further cost optimisation and strong FCF
generation. RGB has won an order to deliver 2500 additional machines solely
to Solaire North in 2023, and is currently in talks with IEC (1009 HK) for its
new orders in the Philippines. Further cost optimization is to be implemented,
given high admin expenses (60% of gross profit) and effective tax rate of 60%
arising from non-deductible expenses. RGB has been a net-cash company since
2015, as it reduced its borrowings and completed its capex cycle. Its FY22A
FCF yield was 14%.

you all see JP Morgan released report on RGB today...very good getting attention from international audience

everyone here thinking 0.30 why can't it be 1.00? this is too undervalued. all palm oil companies are replanting it is the same for casino. they are all reinvesting in new machines. This is one of the few companies that will do really well in 2023. put your money here. RM 1.00 is not crazy. Management is smart, conservative and experienced.

price has been majorly capped / depressed

cheap now. urusharta jemaah sold down to 5% from 18% a few months ago. sold around 36m shares on this stock that has 400k+ average turnover. probably accounts for more than 50% of turnover over the last 6-8 months

FY 2021 paid 22 sen. of course this coming year will pay at least the same if not more. 12% DY if buy now. fund managers should buy la. You deliver 12% for your clients in this climate they will give you special kiss

very good qr again. end of year dividend will be huge

so close to making profit but labour shortage is a big issue...roughly 150 workers (as reported in AR) for this size of estate is too low. hope they can manage this issue. QR will give us enough info to decide

lousy management, lousy company but extra lousy offer. at rm 1.30 tell them to fly kite. otherwise few years later will repackage and IPO again to F the Malaysian public one more round.

Comfort Investor Relations team please do some work - go and give all the broking houses updates about your company. Only RHB currently covering the stock. Need to go and build relationships with all the other banks. Need more people to know about Comfort otherwise will never move. It's a good company and undervalued (trading at lower PE than lousy Rubberex). Overshadowed by Supermax and Topglove.