RGB INTERNATIONAL BHD

KLSE (MYR): RGB (0037)

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Last Price

0.365

Today's Change

-0.005 (1.35%)

Day's Change

0.37 - 0.375

Trading Volume

2,705,800


13 people like this.

8,200 comment(s). Last comment by ceoshare 1 month ago

mcmann

1,142 posts

Posted by mcmann > 2015-10-26 09:59 | Report Abuse

huh tp30cts ?

topseeker

222 posts

Posted by topseeker > 2015-10-26 10:00 | Report Abuse

go go go... tp 0.3 . !!! top volume in bursa today...sure more will be coming

hkhk

2,066 posts

Posted by hkhk > 2015-10-26 10:01 | Report Abuse

any insider news?

mcmann

1,142 posts

Posted by mcmann > 2015-10-26 10:05 | Report Abuse

hahaha why are people so misleading de ? if no info better quiet and move on, better than shout here and there la

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 10:21 | Report Abuse

wow! one morning alredi last few day's full days volume

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 10:32 | Report Abuse

30mil, all time high volume

DreamPredator

1,507 posts

Posted by DreamPredator > 2015-10-26 10:35 |

Post removed.Why?

shan75

319 posts

Posted by shan75 > 2015-10-26 10:37 | Report Abuse

Careful folks, this is dangerous operator gimmic!

Posted by 爱丽丝 梦幻世界 > 2015-10-26 10:37 | Report Abuse

Saya belom bili pon suda naik ...

Posted by taipingbear > 2015-10-26 10:38 | Report Abuse

aiyoh ....making me sick again .
better stop watching the top volume counters .

kwl8888

613 posts

Posted by kwl8888 > 2015-10-26 10:42 | Report Abuse

Huge block at 0.17
I better took profit at 0.165
Last Wednesday bought at 0.15
feel content with the profit.

surewinz

1,014 posts

Posted by surewinz > 2015-10-26 10:43 | Report Abuse

Heavy profit taking again..eyes really pain

soso9999

549 posts

Posted by soso9999 > 2015-10-26 10:54 | Report Abuse

who feel enough just sell to take profit lo , happy with you all make money

surewinz

1,014 posts

Posted by surewinz > 2015-10-26 11:00 | Report Abuse

I will wait another high ;)

MinorityS

16 posts

Posted by MinorityS > 2015-10-26 11:13 | Report Abuse

CIMB has positive write up on RGB. Free cash flow before capital expenditure RM60m a year. Company already in net cash position. On track to hit record profits. If management increases dividends as they have consistently declared that they will, 0.60 may well be a reality.

Posted by taipingbear > 2015-10-26 11:46 | Report Abuse

bullet proof mah like ah sam ....why still wanna to sell early ...
lets wait for higher

MinorityS

16 posts

Posted by MinorityS > 2015-10-26 11:58 | Report Abuse

A good dividend payout is the key to a higher price. The yield factor will provide support for the share price.

shan75

319 posts

Posted by shan75 > 2015-10-26 12:03 | Report Abuse

Operator will push till 0.195!

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 12:10 | Report Abuse

hehe.......

niatfaez

250 posts

Posted by niatfaez > 2015-10-26 12:40 | Report Abuse

Sudah lama tido .ini kali lah

mhchai

589 posts

Posted by mhchai > 2015-10-26 13:25 | Report Abuse

ini curry lah !

popcorn

1,625 posts

Posted by popcorn > 2015-10-26 14:10 | Report Abuse

Shan 75 who is the operator? Najib?

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 14:12 | Report Abuse

50mil!!! OMG, it might HIT 100MIL trading today!!!!!!

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 14:13 | Report Abuse

last time it has such huge volume it hit near 0.20!!

skyz

1,650 posts

Posted by skyz > 2015-10-26 16:46 | Report Abuse

@MinorityS 60cents is too much to ask for la, that would be PE40 + already, in the near term, it need to break and stay afloat the 20cents barrier first.

MinorityS

16 posts

Posted by MinorityS > 2015-10-26 17:20 | Report Abuse

0.60 not my figure. It was what the boss told the financial press earlier this year. He set the deadline of 2018. Achievable, I think, if they can support it with a generous dividend policy. Fantastic cash flows. More than a million RM each week.

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 17:24 | Report Abuse

72mil

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 17:25 | Report Abuse

0.60 is high during their peak before crisis. Tht time all ppl chasing crazy in growth stock mah, giving P/E 20-40

MinorityS

16 posts

Posted by MinorityS > 2015-10-26 17:32 | Report Abuse

Let's give the guy the benefit of the doubt. His credibility is at stake.

mhchai

589 posts

Posted by mhchai > 2015-10-26 17:38 | Report Abuse

EPS 2c * PE 15 = RM0.30 good enuf :)

lloydlim

3,970 posts

Posted by lloydlim > 2015-10-26 17:51 | Report Abuse

It is worth to hold! New high coming soon!

Frank Tan

533 posts

Posted by Frank Tan > 2015-10-26 18:01 | Report Abuse

i stuck at o.18 :{

soso9999

549 posts

Posted by soso9999 > 2015-10-26 18:10 | Report Abuse

wish you all good luck, bye

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 18:56 | Report Abuse

0.18??walao, long time ago

niatfaez

250 posts

Posted by niatfaez > 2015-10-26 20:47 | Report Abuse

what next TP????

Posted by taipingbear > 2015-10-26 20:51 | Report Abuse

Paper plane can fold ....please answer this question

paperplane2

3,235 posts

Posted by paperplane2 > 2015-10-26 21:30 | Report Abuse

Meanwhile, CIMB Research, in an Oct 20 note, said RGB International management believed that its newest markets in Timor Leste and Nepal promised good long-term potential.

surewinz

1,014 posts

Posted by surewinz > 2015-10-26 21:44 | Report Abuse

Actually i run at .165 seeing big selling wave..now plan to buy back on this lvl again@@

mhchai

589 posts

Posted by mhchai > 2015-10-26 22:31 | Report Abuse

no worry, current price still cheap. I already top 30 shareholder and I'm very confident with this stock.

soso9999

549 posts

Posted by soso9999 > 2015-10-26 22:41 | Report Abuse

⊙﹏⊙

chin928

4 posts

Posted by chin928 > 2015-10-26 23:20 | Report Abuse

price still same as last year level. not much movement.

Posted by taipingbear > 2015-10-27 09:02 | Report Abuse

again top volume ......

topseeker

222 posts

Posted by topseeker > 2015-10-27 11:12 | Report Abuse

yes. coming soon. today klci resting... planning to buy more if it drop...

MinorityS

16 posts

Posted by MinorityS > 2015-10-27 12:20 | Report Abuse

Getting CIMB to cover this stock is a good start. Time to get RHB research to do the same. They have already earned the placement fees.

k8118k

981 posts

Posted by k8118k > 2015-10-27 12:25 | Report Abuse

RGB International
Revival of the slot giant
■ A play on the liberalisation of casinos and gaming clubs in emerging Asian countries
■ After suffering badly from a sudden change in Cambodian gaming regulations in
2009, RGB successfully turned around and was back to the black in 2012
■ RGB represents some of the largest gaming machine manufacturers in the world
such as Aristocrat and Shuffle Master, often on a country-exclusive basis
■ Its balance sheet has been deleveraged and is net cash
■ Dividends are gradually rising; trades at 2.9x FY15 Bloomberg consensus EV/EBITDA
Beneficiary of gaming liberalisation
Management believes RGB is well positioned to benefit from the increasing liberalisation
of casino and gaming clubs in emerging Asian countries, particularly the Philippines,
Cambodia and more recently, Laos, Nepal and Timor Leste. Management is optimistic
about the long-term potential of its two newest markets, Nepal and Timor Leste. Every
new outlet it opens in these countries could add 5-10% in incremental EPS annually,
according to the company.
A turnaround story
RGB ran into operational difficulties in 2009 when the Cambodian government imposed
a sudden ban on sports betting and electronic gaming machines in slot clubs in Phnom
Penh and Siem Reap. At the time, RGB had more than 3,000 machines in Cambodia.
The turnaround strategy required RGB to mobilise its idle machines to other markets in
ASEAN, which took three years. RGB returned to the black in 2012.
Complementary business model
RGB’s income stream is derived from: 1) the sale of electronic gaming machines, where
it represents some of the largest manufacturers in the world (Aristrocrat and Shuffle
Master), often on an exclusive country-distributorship basis; and 2) machine
concessions in gaming clubs where it receives a share of revenue. RGB has operations
in 37 outlets with 6,400 machines, mainly in Cambodia and the Philippines.
Deleveraged balance sheet
RGB’s balance sheet was badly damaged when it borrowed heavily to fund a new
casino venture in Cambodia, which eventually failed. The balance sheet has since been
restructured and the company has paid down the loan gradually. Management plans to
use proceeds from a recent share placement to further pare down debt. Combined with
healthy operating cashflow and low capex, RGB’s balance sheet has been fully
deleveraged and was in net cash position as at end 2Q15.
Dividend and valuation
Dividends have been rising gradually since 2014, and management is looking to
continue raising dividend payout as debt continues to be pared down. There is currently
only one broker that covers RGB. Based on consensus EBITDA, the stock trades at 2.9x
FY15 EV/EBITDA, compared to the Asian gaming sector average of 13.8x
CY15EV/EBITDA and the Malaysian gaming sector average of 7.5x CY15EV/EBITDA.

k8118k

981 posts

Posted by k8118k > 2015-10-27 12:26 | Report Abuse

Revival of the slot giant
Background
Formerly known as “Dreamgate Corporation”
Started in 1986, RGB was a pioneer in the ASEAN slots industry. It was listed
in 2004 on MESDAQ as Dreamgate Corporation Bhd and was transferred to
the Main Board in 2008. It changed its name to RGB International in 2010.
RGB’s business model has two income streams – a) the sales and marketing
(SSM) and manufacturing of electronic gaming machines and casino
equipment (of third-party and in-house gaming machines) and b) technical
support and management (TSM), which provides technical support services
and also operates multiple machine concessions in ASEAN.
RGB’s major shareholders are the founders Datuk Chuah Kim Seah and
Chuah Kim Chiew, and Gerak Juara Sdn Bhd. Collectively, they own 38% of
RGB.
RGB ran into operational difficulties in 2009 when the Cambodian government
imposed a sudden ban on sports betting and electronic gaming machines in
slot clubs in Phnom Penh and Siem Reap. At the time, RGB had more than
3,000 machines in Cambodia. The turnaround strategy required RGB to
mobilise its idle machines to other markets in ASEAN, which took three years.
RGB returned to the black in 2012.
RGB’s business model
Sales and marketing (SSM)

k8118k

981 posts

Posted by k8118k > 2015-10-27 12:26 | Report Abuse

The SSM division distributes third-party slot machines and casino
accessories/equipment. The largest third-party brands that it distributes are
Aristocrat and SHFL entertainment (previously and better known as Shuffle
Master). RGB has exclusive distributorship rights for Aristrocrat machines in

k8118k

981 posts

Posted by k8118k > 2015-10-27 12:26 | Report Abuse

Philippines’ three major integrated casinos, Laos, Goa (India) and certain slot
machine clubs in Malaysia. For SHFL, it has exclusivity for Malaysian slot
machine clubs, Laos, Cambodia, Vietnam and Philippines. Besides these two
well-known brands, RGB also represents other international brands such as
Zitro, WMS and R.Franco. (Fig 1)
RGB’s largest customers by geography are the Philippines, followed by
Indochina and Malaysia/Singapore (Fig 2). Demand for gaming machines come
from 1) new casinos or slot clubs, and 2) replacement market.

k8118k

981 posts

Posted by k8118k > 2015-10-27 12:26 | Report Abuse

TSM provides technical support services and also operates multiple machine
concessions in ASEAN. It earns revenue on a profit-share basis, which differs
by country. This business model is resilient vs. the typical volatile VIP segment
as slots have smaller bet sizes. As at 30 Sep 2015, the TSM division had 6,426
electronic gaming machines across 37 outlets, with the largest countries being
Cambodia and Philippines (Fig 5). Generally, RGB signs a five-year
concession with the hall operator with a renewal option of five years, thus
assuring consistent cashflow for the group. Historically, there have been few

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