beware guys....what u see not what u think.... i wonder why this TFP not limit down.?? ketua umno cheras is shareholder inside liao... anytime can pump n dump now... for retail investor...time to throw while its not dump yet by shark
Not sure why investors are still interested in this loss-making technology company. For FY18 the company recorded a loss of RM2mil to its shareholders which is almost 3x higher than the loss of RM700k recorded in FY17. The revenue of RM49.5mil in FY18 is the lowest level ever recorded since 2011. Expect FY19 to still be a loss year for this company.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.4x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.3x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
Expected Target Price: 0.20/0.25 short to mid term 0.30 Long term
Short to mid term: 1-3 months
Long term: 6-12 months
Company Background
TFP Solutions Bhd is a provider of Business Productivity Solutions and Services for Business Enterprises. The company operates under two business solutions namely Business Management Solutions and Converged Infrastructure Solutions.
Latest Development
1. Ace-market listed technology solutions provider TFP Solutions Bhd is seeking to turn around its fortunes with the entry of a new managing director last July. Under the new leadership, it aims to stay lean and mean by venturing into new markets.
2. New MD Datuk Hussian Abdul Rahman, 57 who is already a major shareholder also owns MobilityOne Ltd in which TFP also part of the shareholder of MobilityOne Ltd.
3. MobilityOne and TFP are going into new business by providing fintech solution whcih is e-wallet, remittance and content aggregation.
4. TFP Solutions already provides backend software solution support to many big e-walletplayers in the domestic market, so it sees an easy and seamless transition into the larger e-wallet gameplay.
5. MobilityOne is involved in similar businesses as the potential to grow the business will be something investors will be looking forward to.
6. TFP plans to focus on the underserved foreign workers cashless transaction potential, combining it with the company’s capabilities in human capital management services. The company says it is ready tolaunch its e-wallet service within a couple of months.
7. TFP is confident that they will be able to compete with the big players in the e-wallet segment because they are looking at an untapped segment of the cash transaction market – foreign workers and the rural population. TFP Solutions to target over two million Bangladeshi workers who would welcome better and more convenient ways to transfer money back to their home country.
8. TFP Solutions provides human resource payroll solutions as enterprise resource planning (ERP) to clients that include large multinational companies as TFP sees this as an opportunity to better integratethe payroll solutions to its companies and at the same time offer remittance services to the foreign workers using fintech.
Turnaround Story
1. The company has been making losses for the last three financial years. Losses before tax in 2018 widened to RM2.067 mil from RM0.820 mil the previous year. The company attributes the losses mainly to the weaker ringgit and increased cost of equipment. It also faced declining profit margins in its IT hardware business segment.
2. TFP is focusing on the turnaround by venturing into fintech as mentioned earlier in which areas they are focusing to tap into.
3. TFP Solutions is an SAP silver partner providing comprehensive SAP Business One solutions under its subsidiary SBOne Solutions Sdn Bhd.
4. TFP plans to penetrate the halal industry later this year in which could add to its earnings potential.
5. TFP have been in talks with some of the major players in the telecommuncation industry as they hold a mobile virtual network operator (MVNO) licence which enables them to provide internet services.
6. TFP won shareholders’ approval at its recent EGM to dispose of its lossmaking subsidiary, Tech3 Solutions Sdn Bhd, for RM7.9 mil cash. The proceeds will help finance TFP Solutions’ investment in the online business and the e-wallet system.
7. Tapping into MobilityOne's e-payment businesses in the region can help draw investor interest again in this thinly traded counter.
Technical Analysis
TFP is poised for a breakout in which the resistance is at 0.13 which also means the stock will break it's downtrend line.
MACD histogram is above 0 as this is a sign of a bullish trend.
RSI is slightly above 70% but this doesn't mean the stock is overbought because this is a company which has a small market cap and any slight movement tends to move the RSI quite quickly.
In the wake of COVID19 pandemic, a lot of companies have now turned to cashless payments (e-payment). TFP is among the e-payment service providers to benefit from this.
the noise of e-learning will be getting louder and louder soon.... watch out for these education stocks.... minda, eduspec, sasbadi, tpf, just to name a few
Notes: (1) In November 2019, the Group launched an e-wallet and mobile application, namely OneCALL (as detailed in Section 7.4(ii) of this announcement). As the Group is still a relatively new provider in the e-wallet and mobile application business, the Group has to create and maintain a strong and recognisable product offering among users to distinguish itself among other providers, as users are becoming increasingly discerning in selecting mobile product services. Some of the factors which may affect users’ selection include pricing, customer service, reliability as well as product features and development, amongst others. Thus, in order to establish the OneCALL brand and grow OneCALL’s market share, the Group intends to undertake various marketing efforts as well as ongoing enhancement and development of systems upgrade and customer service of OneCALL. Therefore, the Group intends to allocate approximately RM4.75 million as working capital for the Fintech mobile product business plan
Furthermore, the Group has been taking various efforts to transform itself from a conventional ICT solutions services provider to a technology-driven company by venturing into various ICT offerings, which include: (i) On 27 December 2018, MBP Solutions Sdn Bhd (“MBP Solutions”) (a wholly-owned subsidiary of the Company), had entered into an agency and reseller agreement with MobilityOne Sdn Bhd for the appointment of MBP Solutions as the reseller and agent of MobilityOne Sdn Bhd’s services and products, mainly on the mobile airtime reload service in Malaysia. Currently, MBP Solutions serves as the agent for a retail merchant in Malaysia and had recorded a revenue of RM54.33 million in the FYE 31 December 2019; (ii) Identifying and reviewing opportunities to enhance its existing BMS business. In October 2019, the Group had launched a new cloud-based mobile human resource management system application, namely SMART HR and Payroll. Another enterprise resource planning application for the Group’s university/college automation for campus management system, namely SmartCAMPUS, is expected to be completed and launched by the 1 st half of 2020 for the cloudbased web application while the mobile application is expected to be launched during the 3rd quarter of 2020 (as detailed in Section 7.4(i) of this announcement); and (iii) Collaboration with various partners for the provision of Fintech products. The Group had launched an e-wallet and mobile application, namely OneCALL, in November 2019 through collaboration with Tune Talk Sdn Bhd (“Tune Talk”) for mobile data services. Furthermore, the Group had also ventured into the provision of content aggregation operations via the launch of www.candypoints.com portal in September 2019 (as detailed in Section 7.4(ii) of this announcement).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ooooooo
79 posts
Posted by ooooooo > 2018-03-12 11:18 | Report Abuse
sell,sell,sell