Investment Diary 2021
One Up on ARB Berhad Financial Results
Revenue. ARB Q6FY22 revenue were largely contributed by IoT division, which is in the midst of spin off to list in the Nasdaq. As there were no comparable quarter on YoY basis, the group explained under QoQ notes that the growth of RM38.94 million were contributed by growth in both ERP & IoT division.
Profit Before Tax. The group’s PBT ballooned to RM20.22 million, representing a 374.03% in QoQ growth. The increase were largely caused by a better performance contributed by the ERP and IoT segment.
Taxation. Despite stellar revenue and PBT growth, the PAT of ARB were RM1.65 million due to higher tax expenses of RM7.49 million and a one-off deferred taxation of RM11.07 million. The group expects the tax expenses to normalize to circa RM8.0 million per quarter.
IoT Division. The first announcement was made on 22nd February 2022, where ARB proposed to list ARB IOT Group Limited (AIGL), an indirect wholly-owned subsidiary of ARB on Nasdaq. The latest update on the proposal was on 12th August 2022, where TA Securities Holdings Berhad announced that ARB is seeking to list approximately 9% of the enlarged issued share capital of AIGL.
We expect re-rating in valuation of ARB upon materialization of the Nasdaq spinoff activity.
Dividend. ARB does not have any dividend policy in place.
Our updated TP on ARB is RM0.570 (Based on FY23 FPE of 4.64x) given the bright prospects of ERP and IoT demand. According to Transforma Insights, the IoT industry is expected to be worth over $1 trillion by 2023, and we like ARB’s ahead-of-the-market positioning in the ERP and IoT sector. Recommend BUY.
More articles on Investment Diary 2021
Technical Buy Point Triggered – A Handsome Risk-to-Reward Investment
Created by dessmond1 | Jun 11, 2021
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Apps
Top Articles
1
2
博傻理论
3
Good Articles to Share
4
5
THE INVESTMENT APPROACH OF CALVIN TAN
MKHOP (5139) What Is Its Current Forward P/E and Intrinsic Value, Calvin Tan
7
BFM Podcast
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
