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 ?

出席先前分析汇报会得知，自升式（JU）钻井平台工作的时间表后，我们估计Velesto能源末季钻井平均使用率为77%，比先前预测的70%高，因为进行中钻井工作时间，应该会比预期来得长。

尽管当季有可能录得盈利，但我们出于谨慎考量，没有将末季财测改为盈利，因为该公司存有难以预测且持久的营运成本压力。

若钻井工作因确诊员工而拖累，成本会变得非常高昂，因为船员薪水持续累积，且人手短缺意味现有钻井船员需延长逗留时间，就必须给出补偿。

由于无法招募外国船员，该公司本地其他钻井平台经理不得加大工时，提高工资以弥补离职者工作空缺。

因此，我们预料防疫成本与薪金调账，会在明后财年持续带来压力。

不过，我们相信下财年钻井使用率可达70%，故维持财测、“守住”评级和14仙目标价。

DIY open more and more and more

Exactly why u know nothing , because name shaming is all you poor jackaass have :)

Kah Fui is a good name, and it doesnt even rhym with kaput, check your sense , dont act so desperately pathetic

moneymoney no one can force anyone to INVEST, you do or dont it's all your choice, there's nothing wish or dont wish all based on each individual preference and trading style, if its not for you, then its not for you, read again before writing something make urself look like a complete newbie

bunch of amateurs, see result then only invest ??

Invest needs trust, most of us here have it, be it short, medium or even some have patient to go for long term, if you dont have the trust, the you show up here is already contradicting, just like your statement

"If you wish the investor to INVEST into these company show us the result, action speak louder than words"
laughable statement, gonna pin it here to show your amateur statement

你怕它不会起啊？

those monkeys that bad mouth and gv bodoooh TP , where are they now ?

waooooooo SAPURA

ohhh and dont forget he has 20+ pages full of ARBB comments, this doggy must be very loved by his master :)

hahahahahahah love the comment by bossku

"IM NOT A KEYBOARD WARRIOR BUT I COMMENT AT ARBB EVERYDAY" -line

hmmm

hmmm

*black dude questionmark

uhhh today is already end of this week, market doesnt open on weekent

??????

hmmm this week no show d

been a up and down week, hope we have another better week :)

TGIF Friday, smua rehat and wait a brand new week

every half sen is a hard climb hahaha

finally 0.04, please stay longer

i think the person in charge will read comments here

hope for the best

satisfaction wont be 100% guaranteed, as long as it's progressing, and so far is doing fine

dont mind it just read the constructive one and leave the trash talk alone, everyone here giving opinions and concern for the good of Arbb anyway

Heveaboard is set to resume its uptrend movement as it climbed above the recent high of MYR0.565 on improved trading volume – marking a new YTD high, after breaching above the MYR0.565 immediate resistance on stronger volume – printing a “higher high” bullish pattern. The uptrend which started on 21 Mar may persist until the stock reaches MYR0.60, before marking the MYR0.64 resistance. Conversely, the stock may reverse direction if it falls below the MYR0.54 support, as it forms a “lower low” bearish structure.

gg where did all the money go ?

this penny abit susah, no big player movement

everyday make noise wont help, behind the scene people are working hard and it's not panadol active fast instant effect

working towards Nasdaq listing is good, got ambition, investors need this

line would you mind to pay them a visit and make a summary report for all our sake?

much appreciate