ARB Bhd (previously Aturmaju Resources Bhd) posted a third consecutive year of growth in its FY2021 with a new milestone on its revenue, led by strong momentum growth in both its enterprise resource planning (ERP) and Internet of Things (IoT) segments.

The group’s net profit surged by 70.8% to RM74.2 mil during that financial period from RM43.5 mil a year ago due to contribution from operating income of its ERP and IoT segments.

ARB’s revenue hit a new milestone as it surpassed the RM300 mil mark for FY2021 with RM309.21 mil or a 41% jump from RM219.45 mil in FY2020.

“That our revenue is now above the RM300 mil level gives us a comfortable size to scale our business and expand our earnings margin,” opined ARB’s executive director Datuk Seri Larry Liew Kok Leong.

“In addition, one of the segments in the group – namely, cloud-based revenue services – can create a sustainable recurring income to the group which provides us with a good base to grow from here.”

Datuk Seri Larry Liew Kok Leong

ARB has continued to maintain a strong momentum growth in its 4Q FY2021 ended Dec 31, 2021 as revenue during the quarter shot up 87% to RM135.6 mil buoyed by growth in the ERP and IoT segment.

However, ARB’s net profit during the quarter edged down by 11% to RM17.52 mil from RM19.77 mil in 4Q FY2020 amid a rise in amortisation of intangible assets of RM3.3 mil and depreciation of property, plant and equipment of RM2.6 mil.

Looking forward, the group is confident that strong momentum growth in the ERP and IoT segments will continue to be key catalysts for its growth.

With the available opportunities in hydroponics, the group aims to capitalise on the rising adoption of smart hydroponics techniques in commercial farming by expanding its IoT business into the provision of hydroponics IoT solutions.

“We believe that ARB is in a good position to expand its business regionally as the Malaysian ERP market is expected to grow at a compound annual growth rate (CAGR) of 11.4% over the next five years while the IoT market will grow at a CAGR of 24.7% over the same period,” projected Liew.

“This strong growth momentum will be a key catalyst for us at least over the next five years as we expand our customer base and earnings margin.”

At 4.27pm, ARB was up 0.5 sen or 3.85% to 13.5 sen with 11.61 million shares traded, thus valuing the company at RM164 mil. – Feb 21, 2022

https://focusmalaysia.my/arbs-fy2021-earnings-surges-71-on-erp-and-iot-segments-momentum-growth/