Lim's Blog

Aturmaju Resources Berhad - Stock pick of 2019?

Publish date: Thu, 17 Jan 2019, 01:01 PM

REFERENCE FROM TheEdgemarkets, TheSunDaily & Bloomberg.

Aturmaju Resources Berhad, have been listed on the Mainboard of Bursa Malaysia Securities Berhad since year 2004. The Group of companies operation activities mainly comprise of Information Technology Solution and manufactures of wood products. Moving forward into 2019, the company's board has taken a bold move of diversifying its business to information technology solutions, services, and related activities, as a way of generating new revenue streams and reducing the company’s dependence on its core business which is timber based.

Read on as we look at the technical charts and other metrics that highlights why we believe this diversification will increase the company's share price.

ATURMJU 7181: Diversify to Information Technology Solutions

As mentioned in the introduction, the company is diversifying its business towards the development of Enterprise Resource Planning (ERP) software as concluded at the Special Shareholders Meeting on Dec 04, 2018. At the meeting, the board approved the renounceable rights issue of up to 1,008,150,000 irredeemable convertible preference shares on the basis of 15 ICPS for every single ordinary share in ARB.

Based on an article publication on “Last year, the company also initiated its IT business by the award and fulfillment of an IT project to design, develop, install and support ERP solutions with a project value of RM20000. The group also secured three other ERP projects, worth a combined RM5.6 million on October 3, 2018.

The group further secured additional IT projects focusing on providing/maintaining ERP solutions, with a total estimated project value of RM9 million from three other clients. This raises high optimism from the board as they project that the IT business should contribute about 25% or more to the group’s net profit.”

Recently in a news report from thesundaily "Aturmaju Resources Bhd’s (ARB) unit ARB Development Sdn Bhd enters into an MOU with Yes’s Comm Enterprise Sdn Bhd (YESS) for RM20 million per year contract to offer integrated enterprise resources planning solutions." also reports that “This collaboration is aimed at supplying YESS five retail outlets with an inventory tracking system.”

Datuk Larry Liew, CEO at ARB Investment and Technology said the system aims to precisely map inventory groups into consumer preferences and seasonal trends across YESS’ services.

Liew mentions that: “This ultimately provides better customer service with an improved, more real-time understanding of what is selling and what is not."


ATURMJU 7181: Projected Profit increase in Q4 following a Profitable Q3

In addition to the diversification, the company has consistently been making profits with minimum overhead in Q3. Take a look at the numbers:

According to a report published on,

“In the third quarter, the company reported revenue of MYR 3,802,000 compared to MYR 740,000 a year ago.

Profit from operation was MYR 195,000 compared to negative MYR 1,420,000 a year ago.

Profit before tax was MYR 186,000 compared to negative MYR 1,429,000 a year ago.

Net profit for the financial period attributable to Equity holders of the parent was MYR 186,000 compared to negative MYR 1,429,000 a year ago.”



1 person likes this. Showing 6 of 6 comments


Gogogo no buy will regret

2019-01-17 17:45

Patpat Teo

Using IT multiple is just so cheap even at current price, must buy it before others chase for it

2019-01-17 20:16


Ya another potential counter this coming qr will be look good

2019-01-17 20:25

Jasper Coo

PA quite cheap now? this guy here sure made 99 for cny d lo

2019-01-18 14:36


let's see wat will happen in q4

2019-01-19 02:29


Quality piece of writing which introducing us with the company which is expanding its business towards the development of Enterprise Resource Planning software.

HRM Assignment Writer,

2019-05-14 17:26

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