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Author: Jordan Khoo   |   Latest post: Tue, 18 Jun 2019, 9:32 AM

 

ARB ventures into Cambodia with RM83.5m ERP project

Author: Jordan Khoo   |  Publish date: Tue, 18 Jun 2019, 9:32 AM


Source: https://www.theedgemarkets.com/article/arb-ventures-cambodia-rm835m-erp-project
S
ource from bursa: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6193745

KUALA LUMPUR (June 17): ARB Bhd, a wood products manufacturer which diversified into information technology a year ago, has teamed up with a Cambodian firm to implement the enterprise resource planning (ERP) system and solutions in that country.

The group’s wholly-owned subsidiary ARB Development Sdn Bhd (ARBD) today signed a memorandum of understanding with East Insurance PLC for the project valued at no less than US$20 million (RM83.5 million). 

East Insurance, incorporated in 2017, is principally involved in the provision of general- and life insurance coverages in Cambodia. 

“The MoU shall mark the company’s maiden foray into [the] Cambodian market by leveraging on its expertise in provision of ERP systems to East Insurance, and also serves as a platform for ARBD to penetrate and expand its regional expansion in South East Asian countries, which is in line with the company’s business strategy,” ARB said in a statement. 

ARB, previously known as Aturmaju Resources Bhd, said the MoU is valid for six months and is expected to contribute positively to the group’s future earnings. 

Under the terms of the MoU, ARBD and East Insurance will collaborate in developing and implementing the ERP system in the insurance operation platform for East Insurance in Cambodia. In addition, East Insurance is willing to outsource the IT management project to ARBD. 

“Our entry into the Cambodian market marks another significant milestone for our ERP business, as we continue to pursue growth in line with our strategy to expand our portfolio and geographical presence. Our collaboration with East Insurance demonstrates the trust and recognition for our ERP and IT capabilities and technical skills,” said ARB chief executive officer (investment & technology) Datuk Larry Liew Kok Leong.

“This venture is part of ARB’s three-year international expansion roadmap, and we intend to grow our portfolio via similar collaborations. It is the board's vision to increase the overseas’ revenue stream to reduce reliance in a single market,” he added.

Shares of ARB fell 0.5sen or 1.12% to close at 44sen, giving the group a market capitalisation of RM55.95 million. For the past one year, the counter has gained 225.93%.

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2fast4u no wonder today up, need to buy while its still low
18/06/2019 11:16 AM
LukeDiamond another mou? niceee
18/06/2019 11:31 AM
WoonDeWai today volume quite high due to this mou, i saw many queing at 0.450, 33 traders try to grab with highest bid and only a few at bottom, is like arbb is a honey with tons of bees around it haha
18/06/2019 11:42 AM
WongZhenKang more details of the east insurance co info?
18/06/2019 2:02 PM

Quick take: ARB rises 1% on technical buy

Author: Jordan Khoo   |  Publish date: Tue, 14 May 2019, 11:13 AM


https://www.thestar.com.my/business/business-news/2019/05/13/quick-take-arb-rises-1pc-on-technical-buy/

KUALA LUMPUR: Shares of ARB Bhd rose more than 1% in early trade after a technical buy by PublicInvest Research.

ARB, formerly known as Aturmaju Resources Bhd, rose 1.03%, or 0.5 sen to 49 sen with 5.8 million shares done. ARBB-PA gained 2.38%, or 0.5 sen to 20.5 sen.

PublicInvest said ARBB was staging a potential recovery from its congestion phase well supported by its short term EMA.

It said its RSI was trending upward while its weekly MACD formed a golden crossover a week earlier.

“Hence, both momentum and trend are anticipated to be improved in near term."

“Should resistance level of 53 sen be broken, it may continue to lift price higher to subsequent resistance level of 57 sen,” PublicInvest said.

“However, failure to hold on to support level of 47 sen may indicate weakness in the share price and hence, a cut-loss signal,” it added.

It said the stop loss level was at 51.5 sen.

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ATURMAJU -JOINT VENTURE AGREEMENT ENTERED BETWEEN ARBIOT SDN. BHD AND PERKASA SELALU SDN. BHD.

Author: Jordan Khoo   |  Publish date: Thu, 28 Mar 2019, 10:36 AM


Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6107589

Reference is made to the Company’s announcement dated 4 March 2019 in relation to the MOU entered into by ARB Development Sdn Bhd ("ARBD") and Perkasa Selalu Sdn Bhd ("PSSB") in relation to the development of an Intelligence Modern Lifestyle project to promote the concept of Smart Home System Service Apartment for a proposed mixed development to be developed at Daerah Kuala Selangor (“IOT SEPCM Project”) (“Announcement”). Unless otherwise defined, the definitions set out in the Announcement shall apply herein.

Pursuant to the MOU executed between  ARBD and PSSB, PSSB has appointed ARBD for the IOT SEPCM Project. At the request of ARBD, PSSB agreed to enter into a Joint Venture Agreement with ARBIOT Sdn Bhd ("ARBIOT") ("JV Agreement").

The Board of Director of Aturmaju Resources Berhad (“ARB” or “the Company”) wishes to announce that ARBIOT, an indirect wholly-owned subsidiary of ARB, had on 27 March 2019, entered into a JV Agreement with PSSB.

This announcement is dated 27 March 2019.

 

Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6106593

Pursuant to Paragraph 9.19(23) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of ATURMAJU RESOURCES BERHAD ('ARB' or 'the Company') wishes to announce that ARB DEVELOPMENT SDN. BHD. ('ARBD') (Company No. 897494-A), a wholly-owned subsidiary of the Company had on 26 March 2019 incorporated ARBIOT SDN. BHD. (Company No. 1319647-A) ('ASB'). (referred to as “Incorporation”).

 

Files can be download at official bursa

 

 

Labels: ARBB
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bishibashi fianlly got another step to proceed next stage from mou, gonna buy and hold longer
28/03/2019 1:03 PM
paperplane so its real ??hewhew
28/03/2019 1:07 PM
cokee eh..i think wait first and see see first wo..so rush to buy?
28/03/2019 3:06 PM
FaatihBinKanaan buy b4 up
28/03/2019 3:42 PM
Jasper Coo i guess its real then?
28/03/2019 5:02 PM

Hidden Undervalue Counter - Aturmaju Resources Berhad (ARB Berhad)

Author: Jordan Khoo   |  Publish date: Mon, 4 Mar 2019, 10:00 AM


ARB's foray into the Information Technology business on the foundations of healthy balance sheet promises a huge bullish upside potential due to earnings visibility.

Company profile:

Aturmaju Resources is a group of companies based in mainly two business sectors: Timber and IT-solutions.

The group forayed into IT solutions business in the last fiscal, this was a strategic move to contain the losses of its  timber business which were mainly attributed the type of business- requiring working capital and due to Aturmaju's mostly export based clientele, it involves foreign exchange risks.

"Aturmaju said the proposed diversification is part of the group’s plans to diversify its business activities and to provide another stream of revenue to reduce its dependence on its core existing business"

The ERP solutions acquisition and further development was financed by a rights issue of RM10 million. The best part of the existing management was that the core business was kept debt free and so even after the rights issue, the balance sheet remains healthy at around 0.44 times. Thus, the Q3 and Q4 results have received a boost from this high cash flow business reporting good profits.

Fundamental analysis:

key indicators:

  1. P/E: 5.7x ; undervalued(based on unaudited TTM figures)
  2. P/B: 1.02x  ; undervalued

(* @price=0.36 RM)

  1. D/E: 0.44x ; healthy level medium debt
  2. Dividend yield: 0%, the company has not paid any dividends yet
  3. current ratio: 4.69; great figure, company can easily fulfil payments in next fiscal
  4. quick ratio: 4.68; very good, company has no cash crunch in very short term

>Grahams rule of thumb for valuation: P/E x P/B <= 22.5

Currently for Aturmaju Resources, this multiple comes at 5.7 x 1.02= 5.81, which suggest the valuations being very low. Considering the upside from ERP segment, the valuations seem dirt cheap, a signal to BUY!

>an estimate of intrinsic value using grahams formula based on quantitative data:

The following economic data is sourced to suggest the growth rate of a developed, upper-middle income country of Malaysia. Thus, the return of the stock must viable to these discount rates and Ben Grahams formula gives the intrinsic value of the stock based on the following values:

Malaysia 10 yr yield: 3.905%

Malaysia CPI: 0.6% Q4 FY18; January,2019: -0.7%

Malaysia average AAA bond yield: 4.54%

considered current EPS: 6.28 sen (though most is from Q3-Q4)

 

Intrinsic value,  V= the value expected from the growth formulas over the next 7 to 10 years

EPS= the company’s last 12-month earnings per share

8.5= P/E base for a no-growth company(this can tweaked here)

g= reasonably expected 7 to 10 year growth rate

4.4= the average yield of AAA corporate bonds in 1962 (Graham did not specify the duration of the bonds, though it has been asserted that he used 20 year AAA bonds as his benchmark for this variable

Y= the current yield on AAA corporate bonds.

by this, intrinsic value is calculated to RM 0.99 which is 275% upwards of the current price of RM 0.36. This suggests very high upward potential with highly undervalued current price.

Key stock catalysts:

These are the key triggers to start impulsive buying in the stock which will unlock and reflect the fundamental value of the stock in the near term.

1. Good annual results:

After the stellar performance by the company in recent released of Q4 result,

The group’s revenue increased by 322% compare to preceding year corresponding quarter.

Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6074925

 

2. High profit from ERP business:

The company's foray into this segment had captured investor interest which had shoot the price up, The same business has delivered great Q3, Q4 results with huge profits. The segment now contributes about half of the total revenue and is expected to produce better results in the coming quarters.

 

3. Earnings visibility:

The company has signed an MOU with Yes’s Comm. Enterprise Sdn Bhd (YESS) to collaborate in a new retail business model and to supply the latter’s five retail outlets with an inventory tracking system. The company has stated that the one project alone is to provide an annual RM 20 million in revenues. The contract is renewable annually and provides good earnings visibility in the medium term.

 

Conclusion:

The fundamentals of Aturmaju Resources has improved drastically, given profit jump and increase in book value from RM 0.27 to RM 0.35 quarter on quarter in Q4, still undervalued. The undervalued nature combined with the future cashflows the stock can be valued at RM 0.8 - 1.0  in near-terms when the above triggers execute. Hence, now would be a great time to buy the stock after the stellar Q4 performance and before the release annual report is announced.

 

Labels: ARBB
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ZhuJiaHao very good fundamental analysis, mother today morning edi 0.40, literally possible it will hit like what u analyse 0.80 to 1.00
04/03/2019 10:49 AM
IbrahimBinFareed aturmaju boleh boleh boleh~
04/03/2019 11:54 AM
Joseph q4 is really good result, this is really hidden gem in bursa just like what patrick said earlier.
04/03/2019 12:17 PM

5 Things You Need To Know About Chin Well Holdings Bhd Before You Invest

Author: Jordan Khoo   |  Publish date: Thu, 14 Feb 2019, 10:06 AM


Founded in 1989, Chin Well Holdings Bhd (Chin Well) is now among the world’s largest manufacturers of high-quality carbon steel fasteners. Presently, as at 22 December 2018, Chin Well is worth RM 470.2 million in market capitalization, a 57.8% increase from RM 291.6 million in 2013. 

In this article, I’ll revisit its fundamentals, bring an update on its latest financial results, and assess its investment potential with a handful of valuation tools. As such, here are 5 things to know about Chin Well before you invest. 


#1: The Business 

Currently, Chin Well operates from 3 manufacturing facilities where 2 of them are based in Penang and the other is located in Vietnam. Combined, they have a total production capacity of 18,800 metric tonnes (MT) a month, supplying in excess of 3,000 types of fastener products such as screws, nuts, and bolts. Chin Well derives 35% of its total sales from local customers and the remaining 65% from overseas market mainly in European nations and Asia in 2018.

#2: Management 

Benua Handal Sdn Bhd is the largest shareholder of Chin Well with as much as 55.24% direct shareholdings of the company. Tsai Yung Chuan emerges as the ultimate largest shareholder of Chin Well through his interest in Benua Handal Sdn Bhd. Currently, Tsai Yung Chuan who founded Chin Well back in 1989 now sits in the board as its Managing Director. 

Tsai’s wife, Chang Hsiu-Hsiang is appointed as its Executive Director. Tsai Cheng Tsun, Tsai Chia Ling, Tsai Chia Wen who are son and daughters to both Tsai and Chang are holding key management positions within Chin Well. Hence, the Tsai Family remains influential in both the management and the board of Chin Well.

 

#3: Financials 

Profitability: 
Over the last 5 years, Chin Well has achieved slow but stable growth in sales. It has increased from RM 461.9 million in 2013 to RM 591.3 million in 2018. From which, it has brought in higher shareholders’ earnings, up from RM 22.2 million in 2013 to RM 55.9 million in 2018. During the period, Chin Well has achieved a 5-Year Return on Equity (ROE) average of 10.23% per year. It means, Chin Well has generated RM 10.23 in earnings from every RM 100 in shareholders’ equity per annum from 2014 to 2018.

 

Source: Chin Well’s Annual Reports 

Cash Flows:

For the past 5 years, Chin Well has generated RM 260.7 million in positive cash flows from operations. Out of which, it has expended RM 55.2 million in capital expenditures and had paid out RM 93.4 million in dividends to its shareholders. As a result, Chin Well had grown its cash reserves from RM 30.7 million in 2013 to RM 116.9 million in 2018. 

Source: Chin Well’s Annual Reports

 

Balance Sheet:

As at 30 September 2018, Chin Well does not have long-term borrowings. Chin Well has a gearing ratio of 1.44%, a current ratio of 4.72, and a cash balance of RM 115.9 million.

 

#4: Growth Prospects 

Moving forward, Chin Well has revealed that it expects to benefit from the U.S. – China Trade War as the U.S. government has imposed a tariff on imports from China such as steel products. Chin Well expects the exports of its bulk fasteners to the United States to increase in financial year (FY) 2019. 

In addition, it has embarked on a few plans to grow its business in the future. 

Automated Warehouse:  

Chin Well has commenced its construction of its automated warehouse in Shah Alam and expects its completion in FY 2019. It intends to set up a new business segment by providing an one-stop warehousing services for the near future.

 

Upgrading of Galvanised Wire Line:

Chin Well is expecting its upgrading of galvanised wire line to be completed by FY 2019 and believes that its wire division would contribute positively over the long-term. 


#5: Valuation 

Based on its current stock price of RM 1.60,

 

(1) P/E Ratio:

For the last 12 months, Chin Well has made RM 629.7 million in revenues. Out of which, it has generated RM 59.8 million in shareholders’ earnings or a total of 20.19 sen in earnings per share (EPS). Hence, its current P/E Ratio is 7.92, a bit lower than its 5-Year P/E Ratio of 9.62. 

Figures in RM ‘000 unless stated otherwise

Period Q2 2018 Q3 2018 Q4 2018 Q1 2019 Total
Revenue 160,532 142,778 150,045 176,336 629,691
Earnings 15,355 8,558 17,998 17,932 59,843
EPS (Sen) 5.14 2.88 6.07 6.10 20.19

 

Key Statistics (22 December 2018):

5-Year P/E Ratio Range: 6.99 – 11.83

5-Year P/E Ratio Average: 9.62

Current P/E Ratio: 7.92

 

(2) P/B Ratio

As at 30 September 2018, Chin Well has net assets a share of RM 1.87. Thus, its current P/B Ratio is 0.86, below its 5-Year P/B Ratio Average of 0.98. 

Key Statistics (22 December 2018):

5-Year P/E Ratio Range: 0.89 – 1.14

5-Year P/E Ratio Average: 0.98

Current P/E Ratio: 0.86

 

(3) Dividend Yields

In 2018, Chin Well has paid out 8 sen in dividends per share (DPS). Thus, if Chin Well is able to keep its dividend payouts at 8 sen per annum, its gross dividend yield is 5.00%, above its 5-Year Average of 4.33% per annum. 

Key Statistics (22 December 2018):

5-Year Dividend Yield Range: 3.44% – 5.74%

5-Year Dividend Yield Average: 4.33%

Current Dividend Yield: 5.00%

 

VIA’s Verdict 

Evidently, Chin Well has delivered stable financial results over the past 5 years with slow but steady increase in sales, profits, cash balances, and as well as its dividend payments. Presently, its management is optimistic that Chin Well will be one of the beneficiaries of the U.S.- China Trade War due to tariffs imposed on imported goods from China. 

Labels: CHINWEL
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AturMaju vs KSL - Hidden Buying from Smart Money

Author: Jordan Khoo   |  Publish date: Sat, 19 Jan 2019, 12:09 AM


Labels: ARBB, KSL
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