The edge of ARBB is definitely on the pricing end and down-to-earth application as the business itself is localized. However, ARBB might not be as “famous” as the big names, but judging from the revenue growth, It is pretty obvious that the company is gaining traction.
A five-year study on the company’s past performance would note that ARBB had a revenue CAGR of 58%. We were not able to derive the CAGR for profit after tax due to financial year 2016 was in a loss. But you get the idea when a company turned around from making 16 million losses per year to 42 million in profit after tax in 5 years.
Obviously, ARBB’s growth was outstanding, and it surpasses majority of the industry, and belong to the far-end of a bell graph on the high growing side.
As for the IoT segment for the company, the company had 3 sub-division, namely Smart Building, Smart Home and Smart Water Supply Management Solutions. Some of you might not be aware, but more and more developers are adding the “Smart Home”, a.k.a. voice-controlled electronics as a unique selling point for properties.
Well, ARBB definitely could do that, but it is not that shallow. In the Smart Building sub-division, the company provide engineering, procurement, commissioning (EPC) services to property developer and contractor. The company also helps to integrate automated systems for smart buildings, like installing wire, wireless and mechatronic works.
A Smart Home concept is even more straightforward. For simplicity’s sake, a Smart Home features the ability to have a centralized and remove monitoring and control over electronic appliances, which could be further integrated into your phone’s app. And lastly, the ARBB Smart Water Supply Management Solution provides holistic management on software, hardware of water metering system, and provides data analysis on billing, consumption analysis, maintenance cycle and so forth.
Technically, ARBB could collaborate with GKENT on water metering business.
A Joint Venture with Orange Social Media Sdn Bhd. (ERP) A business development contract of USD 20 million with Tatan Land Co Ltd. (ERP) A MoA with Shuifa IoT Tech Co Ltd for 600 million worth of smart house water filtration system. A solar project with University Sains Malaysia to install, operate and manage < 1 MW solar photovoltaic system. Business contract with IJ Ventures Sdn Bhd for contract value of 18 million. LOA from AGES for IoT SEPCM project for 260 units of services apartment for total contract value of 60 million. Joint Venture agreement with Perkasa Selalu Sdn Bhd for IoT SEPCM project for 78 million.
It looks good on the business perspective as well as the financial calculations. But how about the underlying assets and liabilities?
Technically, all debt indicators are not applicable to ARBB due to its debt free nature. Based on the current price of 29 cents per share, the company arrives at a market cap of 176 million, with net cash of 57 million. A quick enterprise value calculation would put ARBB to approximately 119 million in value.
I had run multiple simulations on the expected earnings and EV/EBITDA valuation, and none of them actually surpasses the 5 times mark. How is it possible that a company with great business, great earnings but terrible pricing by the market?
Certainly, the market had overlooked this hidden champion.
I have come to note that there are ill-intentioned individuals or PAC trying to defame the company and drive the share price flat, or down. These people are considered as “operator” in the market and was not penalized due to their anonymous nature. However, I think a good company certainly do not deserve the treatment from the investment community.
I cannot predict future, but I think the next wave should relate to all tech stock. When market goes bad, Only IOT and tech relate able to stand strong in market.
Guru Gozilla88, last time you were mentioned to call buy on JCY. but seems that JCY not going up some more the directors non-stop issuing ESOS. Any good explanation. I need some help on this.
Errr... Jcy lost trust in market due to previous case and their hdd seems having problem and not yet solve off. Lol... Don't listen people when come to investing. Make your own study.
Kalau you cakap long term for 4-5 years. Better cakap semua counter dkt market good for long term. While waiting 4 to 5 year, investor maybe ada yang da pass away. Tak dapat rasa popit. HAHAHAHAHAAHAHAHAH
Value stocks are those that tend to trade at a lower price relative to their fundamentals (including dividends, earnings, and sales). Value stocks generally have good fundamentals, but they may have fallen out of favor in the market and are considered bargain priced compared with their competitors. https://www.sbgonline.com/Growth-Stocks-vs--Value-Stocks.c1022.htm
Value stocks generally have low current price-to-earnings ratios and low price-to-book ratios. Investors buy these stocks in the hope that they will increase in value when the broader market recognizes their full potential, which should result in rising share prices. https://www.sbgonline.com/Growth-Stocks-vs--Value-Stocks.c1022.htm
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....
bosskufanboy
1,441 posts
Posted by bosskufanboy > 2021-06-18 16:10 | Report Abuse
No need to argue with these toxic new account, discussion sure are welcome here