tech stock has their own time, now can either accumulate abit while still undervalue or KIV first wait for signal breakthrough

Peer comparison

Sadly, we do not have too much great software-based technology companies in Malaysia.

The closest peers I could find would be the newly listed RAMSSOL, CENSOF and probably MICROLN.

The PE ratio for these companies are 42.44 times, 10.20 times and 19.38 times.

On average, ARBB should deserve an 18.00 (conservative basis) times PE ratio to 24.01 times PE ratio (fair value) and 30.00 times in bull scenarios. Thus, the share price should be:

18.00 times PE ratio under maximum dilution – 39.0 cents

24.01 times PE ratio under maximum dilution – 52.0 cents

30.00 times PE ratio under maximum dilution – 65.0 cents

In order words, ARBB is currently trading at a plenty margin of safety left

Trade Receivables

One last key concern of investors on ARBB is the trade receivables. I totally agree that after the SERBADK incident, investors should keep an eye on trade receivables.

Also, this might be the only weakness for ARBB thus far.

Under the financial period of FYE2020, the company had a total of RM132.4 million in trade receivables.

It is important to point out that out of the RM132.4 million had not past due the “grace period” of the company, given to its clients.

There is potential risk, however, on the remaining RM30.1 million which has past due between 31-120 days and RM27.3 million which past due between 121-210 days.

Should you be worried? Yes. But to be fair to ARBB, let’s find out why the trade receivables are increasing.

ARRB is principle involved in enterprise solution, which to be more specific, that would ERP for business.

ARBB focuses on delivery customised ERP solution for small and medium businesses. However, ERP is known for a very high entry costs for small and medium businesses.

The solution given by ARBB is a profit-sharing scheme where they would enjoy the growth of these businesses.

In the year of 2020, most businesses suffered loss – some even shut down for good. The trade receivables are mainly coming from their client and not ARBB itself directly.

Hence, we should expect that once the economy turns over, ARBB should see a sharp decrease in trade receivables.

Also, the auditors had done an impairment test on the trade receivables for ARBB in FYE2020, but the results are positive towards ARBB.

Dilution

Dilution has always been a hot topic for discussion for ARBB due to their complex derivatives structure of ICPS. Let’s take a look at the number of shares from FYE2016 to date.

FYE2016 – 61.1 million shares

FYE2017 – 61.1 million shares

FYE2018 – 67.2 million shares

FYE2019 – 289.8 million shares

FYE2020 – 454.9 million shares

1QFY2021 – 588.4 million shares

Before we proceed, I would need to explain the structure of their ICPS.

In order to fund their conversion of business, ARBB issued up to 15 times of their initial share base of 61.1 million in order to raise funds.

Due to the unique characteristic of ICPS, ARBB per share value was not immediately diluted – but instead, only dilutes whenever there are conversions from ICPS to the common share.

In short, ARBB did 2 rounds of funding – one via issuance of ICPS and upon conversion, ARBB would receive funds from shareholder on the basis of 20 cents per conversion.

However, there is a maximum dilutive effect of these ICPS. For starter, there are approximately 419.8 million ICPS left in the market.

If these ICPS were converted, the maximum number of shares for ARBB would be 1008.2 million shares.

Based on 1QFY2021 results and if we average it by 4 quarters and discount it by 20%, a very conservative net profit figure would be RM21.8 million, or 0.0216 in EPS.

By using the closing price on LDP 25.5 cents, this would translate to an approximate PE ratio of 11.81 times.

ARBB

Profitability

The golden rule of investing in value stock is the profitability of the company. Although that might not be the case from some market leader, but commonly, a company needs to be profitable before it could reward shareholders. So, is ARBB profitable? Let’s take a look at their 5 years revenue and net profit trend.

Revenue

FYE2016 – RM35.0 million

FYE2017 – RM11.4 million

FYE2018 – RM15.3 million

FYE2019 – RM102.6 million

FYE2020 – RM219.5 million

1QFY2021 – RM49.5 million

For those who are new to ARBB, the increase in revenue is mainly caused by a shift in core business model. ARBB had evolved from a traditional lumber upstream player to an enterprise solution provider as well as IoT player. But again, revenue doesn’t prove anything. What about their bottom line?

Net Profit After Tax

FYE2016 – (RM15.6 million)

FYE2017 – (RM3.6 million)

FYE2018 – RM4.2 million

FYE2019 – RM32.8 million

FYE2020 – RM42.9 million

1QFY2021 – RM6.8 million

It seems like the turnaround of core business from timber to a technology company had really paid off. But unfortunately, the company suffered a minor setback in their 1Q results due to lagged overview of the market. The next quarter is likely to be stumped by the Movement Control Order too. However, based on their performance since FYE2018, I believe there is a good chance for them to back on track for growth.

value buy sernkou

chart macam sui sui hahaha

hengyuan pick up the pace again i hope

see u on Monday

mo more show for this week , TGIF Everyone!

can sweep if still got bullet lahh, as for me i think my position is big enough d

yeap neonstrife u see nasdaq drrop like f , snap 7 week losing streak hahahha

HB Investment Bank analyst Soong Wei Siang maintained a "buy" call but with a slightly lower TP of RM4.50 from RM4.59 previously. Soong wrote that the two main factors dragging 1QFY22 performance are likely to dissipate in the upcoming quarters — considering the decline of Covid-19 infection rates and the end of the "Price Lock" campaign.

He said footfall is expected to normalise and the Aidilfitri festivities should further spur consumer spending whereas price adjustments are estimated to lift gross profit margin by two to three percentage points, according to management guidance.

Soong pointed out that higher minimum wage, effective May, will translate into higher wage costs, considering more than half of its 12,000 staff drew salaries below the new minimum wage.

"On the flipside, the resultant higher disposable income should also lead to higher consumer spending and the retail industry could well be one of the biggest beneficiaries.

"As such, the net impact on Mr DIY could be positive, taking into account its dominant market share in the home improvement retail industry," he said in a note.

It declared an interim single tier dividend of 0.7 sen per share (approximately RM44 million), representing a payout ratio of 43.8%, despite earnings contraction.

While analysts described the lower quarterly profit as an unexpected temporary blip or hiccup, they told investors to buy more shares simply because they foresaw better quarters ahead amid expectation of gradual recovery on profit margin.

Still, some quarters were surprised by the year-on-year drop in earnings given the low base effect.

KUALA LUMPUR (May 17): No analysts who track Mr DIY Group (M) Bhd have advised clients to sell the stock, although the home improvement retailer's latest quarterly earnings came in below some expectations.

Nonetheless, Mr DIY came under selling pressure on Tuesday. It fell 16 sen or 4.51% to RM3.39. Some attributed the selling to investors' reaction to the 19.5% drop in its net profit for the first quarter ended March 31, 2022 (1QFY22) to RM100.5 million from RM124.79 million a year ago, due to higher expenses as it opened more stores.

Quarterly revenue, however, climbed 4.02% to RM905.16 million from RM870.18 million a year ago, driven by contributions from new stores, the company said in a bourse filing.

what u mean now? now the price is up

high volume today ooso

hmmm engine stop ?

https://www.geeksforgeeks.org/difference-between-ems-and-nms/

i half understand half dont understand, but you guys can read it up

no matter how they bad mouth here, but they still stick around in ARBB forum neverthelessly, maybe they are the true fans of ARBB , we are ikan bilis hehe

i googled up it says, Element Management System

i think this is the one

Peer comparison

Sadly, we do not have too much great software-based technology companies in Malaysia.

The closest peers I could find would be the newly listed RAMSSOL, CENSOF and probably MICROLN.

The PE ratio for these companies are 42.44 times, 10.20 times and 19.38 times.

On average, ARBB should deserve an 18.00 (conservative basis) times PE ratio to 24.01 times PE ratio (fair value) and 30.00 times in bull scenarios. Thus, the share price should be:

18.00 times PE ratio under maximum dilution – 39.0 cents

24.01 times PE ratio under maximum dilution – 52.0 cents

30.00 times PE ratio under maximum dilution – 65.0 cents

In order words, ARBB is currently trading at a plenty margin of safety left

Trade Receivables

One last key concern of investors on ARBB is the trade receivables. I totally agree that after the SERBADK incident, investors should keep an eye on trade receivables.

Also, this might be the only weakness for ARBB thus far.

Under the financial period of FYE2020, the company had a total of RM132.4 million in trade receivables.

It is important to point out that out of the RM132.4 million had not past due the “grace period” of the company, given to its clients.

There is potential risk, however, on the remaining RM30.1 million which has past due between 31-120 days and RM27.3 million which past due between 121-210 days.

Should you be worried? Yes. But to be fair to ARBB, let’s find out why the trade receivables are increasing.

ARRB is principle involved in enterprise solution, which to be more specific, that would ERP for business.

ARBB focuses on delivery customised ERP solution for small and medium businesses. However, ERP is known for a very high entry costs for small and medium businesses.

The solution given by ARBB is a profit-sharing scheme where they would enjoy the growth of these businesses.

In the year of 2020, most businesses suffered loss – some even shut down for good. The trade receivables are mainly coming from their client and not ARBB itself directly.

Hence, we should expect that once the economy turns over, ARBB should see a sharp decrease in trade receivables.

Also, the auditors had done an impairment test on the trade receivables for ARBB in FYE2020, but the results are positive towards ARBB.

Dilution

Dilution has always been a hot topic for discussion for ARBB due to their complex derivatives structure of ICPS. Let’s take a look at the number of shares from FYE2016 to date.

FYE2016 – 61.1 million shares

FYE2017 – 61.1 million shares

FYE2018 – 67.2 million shares

FYE2019 – 289.8 million shares

FYE2020 – 454.9 million shares

1QFY2021 – 588.4 million shares

Before we proceed, I would need to explain the structure of their ICPS.

In order to fund their conversion of business, ARBB issued up to 15 times of their initial share base of 61.1 million in order to raise funds.

Due to the unique characteristic of ICPS, ARBB per share value was not immediately diluted – but instead, only dilutes whenever there are conversions from ICPS to the common share.

In short, ARBB did 2 rounds of funding – one via issuance of ICPS and upon conversion, ARBB would receive funds from shareholder on the basis of 20 cents per conversion.

However, there is a maximum dilutive effect of these ICPS. For starter, there are approximately 419.8 million ICPS left in the market.

If these ICPS were converted, the maximum number of shares for ARBB would be 1008.2 million shares.

Based on 1QFY2021 results and if we average it by 4 quarters and discount it by 20%, a very conservative net profit figure would be RM21.8 million, or 0.0216 in EPS.

By using the closing price on LDP 25.5 cents, this would translate to an approximate PE ratio of 11.81 times.

Profitability

The golden rule of investing in value stock is the profitability of the company. Although that might not be the case from some market leader, but commonly, a company needs to be profitable before it could reward shareholders. So, is ARBB profitable? Let’s take a look at their 5 years revenue and net profit trend.

Revenue

FYE2016 – RM35.0 million

FYE2017 – RM11.4 million

FYE2018 – RM15.3 million

FYE2019 – RM102.6 million

FYE2020 – RM219.5 million

1QFY2021 – RM49.5 million

For those who are new to ARBB, the increase in revenue is mainly caused by a shift in core business model. ARBB had evolved from a traditional lumber upstream player to an enterprise solution provider as well as IoT player. But again, revenue doesn’t prove anything. What about their bottom line?

Net Profit After Tax

FYE2016 – (RM15.6 million)

FYE2017 – (RM3.6 million)

FYE2018 – RM4.2 million

FYE2019 – RM32.8 million

FYE2020 – RM42.9 million

1QFY2021 – RM6.8 million

It seems like the turnaround of core business from timber to a technology company had really paid off. But unfortunately, the company suffered a minor setback in their 1Q results due to lagged overview of the market. The next quarter is likely to be stumped by the Movement Control Order too. However, based on their performance since FYE2018, I believe there is a good chance for them to back on track for growth.

something is brewing ?

Kenanga call buy

volume lai liao

hahahaha finally trash DickyMe got reported and banned hahahaha, trash shud back to trash can

knm slowed down jor

it's a self-repeating cycle :') what ups will eventually down, and vice versa

nasdaq not doing too well oso this entire weeks

watching their debate, feel like sleeping already ahahaha

it's going to take a long time before (if they can) they back and see their glory days again

hahahaha flower wont stay red forever

those who stuck on above 15 sen really stress now

AS Malaysia’s COVID-19 cases climbed higher, Pak Khalid (not his real name) wondered if his roadside stall would survive another lockdown.

When the news broke that dine-ins were banned again, he folded away his plastic tables for what he thought was the last time.

Pak Khalid is not alone in his struggle. Between March and October 2020, 2,713 small and medium enterprises (SMEs) in Malaysia have been forced to close.

The impact of these closures continues to ripple throughout our country, and we see its effects in the form of our unemployed relatives, news of our favourite chendol stall in Penang closing and pleas for donations on social media.

Well-meaning researchers have pointed out that going digital will help hawkers stay afloat, but this is easier said than done.

Hawkers such as Pak Khalid continue to struggle with registering their businesses on online platforms, what more having to upload photos of his products, tracking orders as they come in, or having to answer the confusing: “Can I pay using e-wallet?”.

While the nation’s internet connectivity is at a high of 88%, 55% of our community remain unbanked and unqualified for conventional financial assistance which could help them survive these difficult times.

As we celebrate another Merdeka and sing “Rakyat hidup bersatu dan maju”, it is time we made sure this becomes a reality.

That each Malaysian get equal opportunities to achieve financial independence so we can truly prosper together.

This journey begins with financial inclusion which goes beyond granting more people with access to pre-existing financial solutions.

In Singapore, a software engineer noticed that hawkers were struggling to read online orders.

Understanding that these uncles and aunties were more familiar with WhatsApp, he converted the order sheets into order forms which would stay on WhatsApp.

Within eight months, this small project has been adopted by more than 230 Singaporean hawkers, sparking meaningful digital transformation for the community, and helping them keep the lights on.

the ultimate to choose to invest, or not to invest is on you (wink). Make your own call!

Trade Receivables

One last key concern of investors on ARBB is the trade receivables. I totally agree that after the SERBADK incident, investors should keep an eye on trade receivables.

Also, this might be the only weakness for ARBB thus far.

Under the financial period of FYE2020, the company had a total of RM132.4 million in trade receivables.

It is important to point out that out of the RM132.4 million had not past due the “grace period” of the company, given to its clients.

There is potential risk, however, on the remaining RM30.1 million which has past due between 31-120 days and RM27.3 million which past due between 121-210 days.

Should you be worried? Yes. But to be fair to ARBB, let’s find out why the trade receivables are increasing.

ARRB is principle involved in enterprise solution, which to be more specific, that would ERP for business.

ARBB focuses on delivery customised ERP solution for small and medium businesses. However, ERP is known for a very high entry costs for small and medium businesses.

The solution given by ARBB is a profit-sharing scheme where they would enjoy the growth of these businesses.

In the year of 2020, most businesses suffered loss – some even shut down for good. The trade receivables are mainly coming from their client and not ARBB itself directly.

Hence, we should expect that once the economy turns over, ARBB should see a sharp decrease in trade receivables.

Also, the auditors had done an impairment test on the trade receivables for ARBB in FYE2020, but the results are positive towards ARBB.

Peer comparison

Sadly, we do not have too much great software-based technology companies in Malaysia. The closest peers I could find would be the newly listed RAMSSOL, CENSOF and probably MICROLN. The PE ratio for these companies are 42.44 times, 10.20 times and 19.38 times.

On average, ARBB should deserve an 18.00 (conservative basis) times PE ratio to 24.01 times PE ratio (fair value) and 30.00 times in bull scenarios. Thus, the share price should be:

18.00 times PE ratio under maximum dilution – 39.0 cents

24.01 times PE ratio under maximum dilution – 52.0 cents

30.00 times PE ratio under maximum dilution – 65.0 cents

In order words, ARBB is currently trading at a plenty margin of safety left

Dilution

Dilution has always been a hot topic for discussion for ARBB due to their complex derivatives structure of ICPS. Let’s take a look at the number of shares from FYE2016 to date.

FYE2016 – 61.1 million shares

FYE2017 – 61.1 million shares

FYE2018 – 67.2 million shares

FYE2019 – 289.8 million shares

FYE2020 – 454.9 million shares

1QFY2021 – 588.4 million shares

Before we proceed, I would need to explain the structure of their ICPS. In order to fund their conversion of business, ARBB issued up to 15 times of their initial share base of 61.1 million in order to raise funds. Due to the unique characteristic of ICPS, ARBB per share value was not immediately diluted – but instead, only dilutes whenever there are conversions from ICPS to the common share.

In short, ARBB did 2 rounds of funding – one via issuance of ICPS and upon conversion, ARBB would receive funds from shareholder on the basis of 20 cents per conversion.

However, there is a maximum dilutive effect of these ICPS. For starter, there are approximately 419.8 million ICPS left in the market. If these ICPS were converted, the maximum number of shares for ARBB would be 1008.2 million shares.

Based on 1QFY2021 results and if we average it by 4 quarters and discount it by 20%, a very conservative net profit figure would be RM21.8 million, or 0.0216 in EPS. By using the closing price on LDP 25.5 cents, this would translate to an approximate PE ratio of 11.81 times.

Profitability

The golden rule of investing in value stock is the profitability of the company. Although that might not be the case from some market leader, but commonly, a company needs to be profitable before it could reward shareholders. So, is ARBB profitable? Let’s take a look at their 5 years revenue and net profit trend.

Revenue

FYE2016 – RM35.0 million

FYE2017 – RM11.4 million

FYE2018 – RM15.3 million

FYE2019 – RM102.6 million

FYE2020 – RM219.5 million

1QFY2021 – RM49.5 million

For those who are new to ARBB, the increase in revenue is mainly caused by a shift in core business model. ARBB had evolved from a traditional lumber upstream player to an enterprise solution provider as well as IoT player. But again, revenue doesn’t prove anything. What about their bottom line?

Net Profit After Tax

FYE2016 – (RM15.6 million)

FYE2017 – (RM3.6 million)

FYE2018 – RM4.2 million

FYE2019 – RM32.8 million

FYE2020 – RM42.9 million

1QFY2021 – RM6.8 million

It seems like the turnaround of core business from timber to a technology company had really paid off. But unfortunately, the company suffered a minor setback in their 1Q results due to lagged overview of the market. The next quarter is likely to be stumped by the Movement Control Order too. However, based on their performance since FYE2018, I believe there is a good chance for them to back on track for growth.

let's compile the questions and ask it on AGM, sure these are the constructive questions that can help ARBB grow further!

meanwhile some other counter even have board of directors resign out of the blue, so act this is nothing new

any sector oso same lor, you dont like the service, you will change and let other do lor , nothing significant to the company oso

Given that the orderbook replenishment falls within our expectations, we made no changes to our earnings forecast, pending their 1Q22 quarterly results release in coming weeks.

Therefore, we maintained our BUY recommendation on KGB with an unchanged target price of RM2.10.
We derive our target price by assigning targeted P/E multiple of 28.0x to FY22f EPS of 7.5 sen.

The assigned targeted P/E multiple is slightly above with the valuations of the technology sector that is trading at 25.3x for 2022f. The slight premium is justifiable due to KGB’s niche business model.

Risks to our recommendation and target price include weaker-than-expected targeted orderbook replenishment of RM700.0m for FY22f.

Any slowdown in semiconductor sales may dampen the large scale UHP projects delivery to China and Singapore, given that the UHP segment plays an integral role towards the total revenue contribution and earnings growth.

oil oil mari mari mari

hahahaha sry cant help coz its funny seeing dicky tp everytime hahaha

Dicky xiaojiji 5cm for real!

neonstrife article i dont see any issue, whereas you, lack of basic courtesy, name shaming, empty-can opinion, buat buta repeat questions like Alzheimer, 25 pages of PURE ARBB bias comments,

pls have some sense of shame, go and hide yourself in a cave

uhhh, this joker still here ?