Superbull168, okay. Wishing you good luck

Superbull168 - this is a hopeless counter as Jacky Pang & complice will push the price down. Just prove at your own. See the price just got pushed down to 2 5 cents with Jacky Pang's complice big volume queuing to sell at 2.5 cents

Same big shark of sanichi

Hopeless counter as it went down from 15 cents to current price of 4.5 cents

Be careful with this counter as big shark has got what they want. It is very likely that it may be like ipower which has slipped all the way till it's worthless & de-listed from bursa

Technical Analysis

============

- SAPRNG drop below to maintain RM0.275 with huge volume (Highest in 4 mths+) on 29.01.2019

- RSI fall below 20 and dull in 4 days.

- However, it tries to challenge 20EMA and short term downtrend line with huge volume on 08.02.2019. RSI also turned upward.

- Thus, it consolidated RM0.275 as a support line, S2.

- Resistance R2 @ RM0.380

- Resistance R1 @ RM0.335

- Support, S1 @ RM0.300

- Support, S2 @ RM0.275

4 Weeks Range: 0.235 - 0.53
4 Weeks Price Volatility (%):
66.98%
52 Weeks Range: 0.225 - 0.555

KUB potentially has downside trend with its 4 week low at 23.5 & 52 weeks low at 22.5. Currently its trading price is at 35.5. If it breaks 32, its potential support may be seen at 28. Be prudent trading.

New Straits Times
KUALA LUMPUR: Sapura Energy Bhd has raised about RM4 billion from a rights issue which resulted in Permodalan Nasional Bhd becoming its largest shareholder.

The group received 8.14 billion of valid acceptances and excess applications for its rights shares with warrants which closed on January 16. This represented a subscription rate of 81.5 per cent.

For its Islamic redeemable convertible preference shares (RCPS-i), the group saw just above 100 per cent of valid acceptances and excess applications.

The remaining portion of the rights shares of 1.85 billion units will be fully taken up by appointed joint underwriters comprising Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd.

Following the rights issue, Permodalan Nasional Bhd and its associated funds emerged as the single largest shareholder with 40 per cent shareholding in Sapura Energy.

Sapura Technology Sdn Bhd will continue to be a significant shareholder, being the second largest after PNB, with a direct and indirect stake of 16.3 per cent.

Minority shareholders comprising both local and foreign participation will hold a total of 42.2 per cent.

Sapura Energy said the participation from PNB and other shareholders provided a strong equity base for it to chart and execute growth strategy to deliver long-term prospects.

Sapura Energy embarked on two corporate exercises to ensure it has sufficient capital to grow and operate on a stronger balance sheet.

In tandem with the rights issue, the group will form a 50:50 strategic partnership with OMV, which will result in Sapura Energy receiving cash proceeds of up to US$975 million.

An extraordinary general meeting to seek shareholders’ approval for the proposed strategic partnership is set for January 28, 2019.

Proceeds from both the rights issue and the proposed OMV partnership will be used to repay the group’s borrowings and for working capital.

Upon the completion of both exercises, the group’s gearing ratio is expected to drop significantly from 1.74 times to 0.62 time.

“Subsequently, the group is expected to benefit from savings in finance cost of about RM314 million per annum.”

Sapura Energy said its growth strategy continued to see fruition in the increasing number of contract wins.

The group’s contract wins to-date stood at RM9.3 billion for its engineering and construction and drilling businesses. Its growing order book now stands at RM19.3 billion.

https://klse.i3investor.com/blogs/share4u2019/190833.jsp

Sapura Energy - A cyclical recovery play (TP RM0.55 by Maybank IB Research)

https://klse.i3investor.com/blogs/goodarticles/189823.jsp

Oil and gas services provider Sapura Energy (SAPE) has secured contracts worth RM760m, including a sizable drilling contract. Macquarie Equities Research (MQ Research) released a report last week (8 Jan) with an Outperform recommendation, and raised their FY20 and FY21 earnings per share (EPS) by 4% and 1% respectively, lifting their target price to RM0.56.

Conclusion
SAPE announced RM760m contract wins, including a sizable drilling contract.

Impact
The Angola drilling contract win is notable for the length of the contract, two years, vs SAPE’s previous contract wins which have only lasted several quarters. MQ Research expects the rates will be substantially higher vs ASEAN, potentially the highest rates in the fleet. Nonetheless MQ Research expects utilisation to remain soft in FY20 on flat tender rig activity outlook from Petronas.
Earnings and Target Price Revision
MQ Research upgrades FY20/21 earnings per share (EPS) by 3.9%/1.4% on higher drilling earnings.
Price Catalyst
12-month price target: RM0.56 based on a Sum of Parts methodology.
Catalyst: Completion of cash call, exploration & production (E&P) stake sale and new contract wins.
Action and Recommendation
MQ Research sees short term pressure on the share price from the post-rights overhang. However, long term fundamentals continue to improve. Maintain Outperform with marginally higher target price of RM0.560.
Source: Macquarie Research

VS
先看威城最新业务发展，以及其财务状况。威城于2018年11月中宣布了表现较差的2019财政年首季业绩。

威城首季净利按年收窄7.1%至3980万令吉（前期为4290万令吉），主要受到脱售一家子公司蒙亏540万令吉、外汇亏损达640万令吉的拖累。

该公司营业额则保持10亿8000万令吉扯平水平。这些表现尚不算太差，不过，惊吓市场分析员的利空，实是未来业务前景不好，特别是旗下大马业务的其中一个客户可能大减其订单，最坏打算可能高达5亿令吉，这才是令分析员及投资者感到担心主因。

首季净利令人失望

马六甲证券分析员就指出，威城首季净利表现令人失望，仅占其全年净利预测2亿2400万令吉的17.8%，营业额则仅占全年预测的21.9%。这主要是大马及中国业务表现皆比市场预期来得差，特别是中国业务受到大规模成本重组（裁员成本）拖累。

展望未来，分析员预料威城赚幅成长轻微，主要是其较高营运成本及较低的生产使用率，特别是失去现有一个主要客户的订单。2019财政年营业额料比2018年来得低，与较低的盒装订单前景一致。

威城也在缩减中国业务以降低营运成本及下跌的销售额。预料2019财政年将是中国业务面对痛苦的一年，主要是受到中国与美国贸易战日益紧张的负面冲击。

下半年恐失主要客户订单

分析员指出，预料威城在2019财政年下半年失去一个主要客户的盒装订单，料是全球消费者电子产品需求走软所致。所以大马业务营业额料走低（低营收及高人工成本），特别是本地销售占整体营业额逾半或是主要营收贡献者。

预料其中国业务将连续第二年落入净亏损，因受到美中贸易战拖累其销售额，大幅度的裁员配套加剧亏损，预料会有更多削减成本措施、厂房使用率不足、以及脱售子公司蒙亏等。

长期而言，分析员则稍为派发"定心丸"，即中国业务重组实有必要，以确保公司得以继续生存及改善其盈利，特别是在全球经济成长潜在走低的时刻。

明后年财测下砍

基于上述因素，威城的中短期业务前景低迷。

该公司的优势包括有望攫取新客户填补大批订单缺失的缺口，特别是过去良好记录及有能力提供所需要的产能包括人力资源在内。

该行将威城的2019及2020财政年净利预测下砍38.0%，分别至1亿3870万令吉及1亿6230万令吉。营业额则下调至36亿6000万令吉（减25.5%）及39亿5000万令吉（减28.2%），反映其2019财政年下半年的疲弱展望。当时该行将其目标价，从之前的2令吉下调至1令吉25仙，保持在其预测本益比17.0倍水平。

当时其他证券研究给予的目标价也可作为参考，包括艾毕斯研究1令吉31仙、大马投行的1令吉13仙、大众研究的97仙以及马银行研究的82仙。

财务状况方面，截至2018年10月30日为止，该公司的总资产为32亿1168万4000令吉，其中流动资产总额达20亿3441万3000令吉，包括库存为4亿4412万6000令吉、合约资产为1亿3748万3000令吉、贸易及其他应收款项为10亿7600万3000令吉、现金及等同现金为3亿6180万4000令吉。

非流动资产下的产业/工厂/器材占9亿2302万5000令吉、预付租赁付款为7790万2000令吉、联号公司投资为7030万令吉、其他投资为8915万令吉等。

威城的总负债为15亿2195万8000令吉，其中流动负债占13亿6534万4000令吉，包括贸易及其他应付款项为7亿9566万2000令吉、贷款及借贷占5亿4649万4000令吉。该公司每股净资产值为84仙。储备金为8亿1134万5000令吉。

Both counters' share price under Tan Sri Yap are not performing well. Don't know what's wrong with both companies under leadership of Tan Sri Yap

Limit up price is 44.5 cents.

Believe all shareholders have been played out by Hadian & BOD.

Thanks Ruslimz for clarification

Yup, believe we are all losers & fooled by major shareholders credit Suisse & PAC with their intention to buy low sell high with their share collections from 40 cents till now.

Sad to say that we were fooled by some of us who thought to kill us in this forum ending with lose-lose situation. These major shareholders are foreigners whom are not care about you & me.

Really hope plan B if any for materialise of existence of SONA with its continuation. Otherwise, we may end up like Cliq with no ending time to get its refund

They have 2 yrs grace period to refund if they cease biz operations or delist. Just wait long long to get back money. Story to learn is lose-lose

Noted on comment by Rohank71 as believe SONA has plan B with this QA purchase. Somebody has bought a lot of warrants it seems. Secondary or option soon to be announced. This time hope gain support

Retail Market Monitor
MONEY TALK
Sona Petroleum (SONA MK)
Decent Chance Of Gains From Both Outcomes
Sona will seek shareholders’ approval for the purchase of the Stag Oilfield (QA) on 26 April. If the QA is not approved, shareholders can expect proceeds of a maximum of RM0.48/share (excluding various costs). If the QA is approved, the target price would be RM0.54/share if oil prices recover to US$80/bbl beyond 2020. Assuming no risks to both assumptions, shareholders may stand to be winners in both outcomes. The asset will have no upside if the long-term oil price is <US$70/bbl. Initiate coverage with BUY and target price of RM0.54.

INVESTMENT HIGHLIGHTS

 Potential for shareholders to be winners in both outcomes. Sona Petroleum (Sona) will seek shareholders’ approval for the qualifying acquisition (QA) on 26 April at a purchase price of US$25m. Independent reserve consultants Gaffney, Cline & Associates (GCA) deem the purchase consideration fair at a cost (2P reserves) of about US$1.5/boe, based on a 2P reserve estimate of 17.6MMboe. This is a cash generating asset that has a technical remaining field life of 21 years. Based on the assumptions on both outcomes detailed below, shareholders can stand a decent chance of seeing investment gains.

Max cash valueofRM0.48/sharefordistribution.AssumingtheQAisnotapproved, shareholders (ex-management which owns 20% stake) can expect a distribution of a maximum of RM0.48/share (9% upside), which reflects the current cash trust amounts and is based on the assumption of 4% interest earned for one more year. The uncertainty lies in the time that the company will take to liquidate and this might take 6- 12 months. Costs that may reduce the max proceeds are: a) running operating costs, b) liquidation and distribution-related expenses, and c) tax payable on new interest earned on the trust funds.

Plans and scenarios: If the QA is approved. After the US$25m purchase, Sona will carry out a two-phase infill development plan (total US$110m) by 1Q17 and 2Q18 respectively, which will enhance long-term production rates by 35% from 4,600bpd of oil in 2016. The cash trust amounts and the Stag’s operating cash flows are expected to be sufficient to fund the infill development. They do not expect to take up borrowings. If shareholders approve the QA, the asset could be value-accretive in the long term against the backdrop of a prolonged oil price recovery, and/or if cost reductions are greater than expected (please see below). In this case, we have detailed DCFs based on oil price scenarios, valuing production up till 2028 – the last year expected for commercial production of 2P reserves, according to GCA.

Target prices from a scenario-based analysis. Assuming the QA is approved and oil prices increase progressively to US$80/bbl by 2020 amid minor cost reductions, our target price for

Sona would be RM0.54 (including RM0.08 capital repayments, 24% upside). On the flip side, a depressed oil price environment (long-term oil prices <US$70/bbl) will remove the asset’s upside from the current share price. Stag’s net present value (NPV) breakeven is US$45/bbl. Note that our valuation is more bullish vs the consultant’s valuation, as they have assumed abandonment costs after 2028.

KEY FINANCIALS
Year to 31 Dec (RMm) 2014 2015
Net Turnover - - EBITDA (23.5) (11.8)
Operating Profit
Net Profit (Reported/Actual) Net Profit (Adjusted)*
EPS (sen)
PE (x)
P/B (x)
Net Dividend Yield (%)
Net Margin (%)
Net Debt/(Cash) to Equity (x) ROE (%)
Consensus Net Profit UOBKH/Consensus (x)
- - (28.5) (17.5) (28.5) (17.5) (0.02) (0.01) - - 18.00 46.60 - -
- -
- -
- -
- -
* No net profit forecasts pending the outcome of the QA. If QA is approved, net profits for 2015/2016F could be RM5-12m Source: Sona, Bloomberg, UOB Kay Hian
-
-
www.utrade.com.my 1

UOB KayHian research report as per following :

Retail Market Monitor
MONEY TALK
Sona Petroleum (SONA MK)
Decent Chance Of Gains From Both Outcomes
Friday, 22 April 2016
BUY
(Initiate Coverage)
Share Price Target Price Upside
COMPANY DESCRIPTION
Sona will seek shareholders’ approval for the purchase of the Stag Oilfield (QA) on 26 April. If the QA is not approved, shareholders can expect proceeds of a maximum of RM0.48/share (excluding various costs). If the QA is approved, the target price would be RM0.54/share if oil prices recover to US$80/bbl beyond 2020. Assuming no risks to both assumptions, shareholders may stand to be winners in both outcomes. The asset will have no upside if the long-term oil price is <US$70/bbl. Initiate coverage with BUY and target price of RM0.54.
INVESTMENT HIGHLIGHTS
RM0.44 RM0.54 +24.0%
MALAYSIA
Sona Petroleum is a special purpose acquisition company (SPAC)

Concurred to support QA purchase as per justifications:
1) Good bargain for this QA with revised purchase of USD25 million
2) Justifiable with serious effort of capital repayment of 8 cents
3) Strong management team with vast experience, adept exposure & good governance
4) Up trending oil price with target of USD50 per barrel by year end

Agreed, sad with this counter. Don't know what Jacky Pang is doing. Keep on raising fund via right & capital reduction. Proven failure as per counter like Sanichi, Trive & DGB. After fund raising, counters go to south, dropping till the bottom. Just curious why SC & Bursa could approve co. without any expansion plan or profit. Really sad.
Malaysia Boleh, sigh !!!!!!

With this purchase, SONA may still hold a lot of cash to look for other QA if any. Indeed, this is a very good move for this wise acquisition. Just wait, if every steps go smoothly. Believe this counter will attract a lot of fund Mgr's investment. It will definitely show a quantum leap price in near future.

Hi Officejanitor, based on your calculation, its target price of RM1.80. That means it has more room for uptrend. Just wait and see whether your prediction will come true.

Definitely it is a good buy for this QA acquisition. Its peak movement is coming soon.

The Star Business News

Monday, 2 November 2015
Sona Petroleum buying 100% of Stag Oilfield for RM215m

KUALA LUMPUR: Sona Petroleum Bhd is buying the 100% stake in the Stag Oilfield, offshore Western Australia, for US$50mil (RM215.2mil), which will be its qualifying acquisition.

It said on Monday it was buying the production licence WA-15-L and pipeline licence WA-6-PL (Stag Oilfield) and the associated assets from Quadrant Northwest Pty Ltd and Santos Offshore Pty Ltd.

Sona said the Stag Oilfield is a producing oilfield in the Dampier sub-basin of the Carnarvon Basin, offshore Western Australia and in a water depth of 50 metres and 60km offshore.

Santos owns 66.67% of Stag Oilfield while the operator Quadrant owns the remaining stake.

Sona said the purchase consideration would be satisfied in cash and funded via Sona Petroleum’s internal funds raised from its initial public offering held under a trust account (net of taxes payable) amounting to RM525.6mil as at Oct 30, 2015.

The Edge Today 2nd November 2015:

KUALA LUMPUR(Nov 2):
Special purpose acquisition company (SPAC) Sona Petroleum Bhd ( Valuation: N/A, Fundamental: N/A) is planning to buy Australia’s Stag Oilfield for US$50 million(RM215.2 million), and the transaction is also intended to be the SPAC’s qualifying acquisition(QA).

Sona Petroleum in June had said it had scrapped its initial proposed QA, which was the acquisition of Salamander Energy Plc’s Thailand upstream oil and gas assets. The group had then said that it was confident of meeting its July 30, 2016 deadline to make a QA.

In a filing with Bursa Malaysia today, Sona Petroleum said its indirect wholly-owned subsidiary Sona E&P (Perth) Pty Ltd (Sona Australia )will serve as the buyer, and Sona Petroleum as guarantor for the sale and purchase agreement with Quadrant Northwest Pty Ltd and Santos Offshore Pty Ltd, whom are the sellers.

The agreement entails Sona Australia acquiring 100% interest in the production license WA-15-L and pipeline license WA-6-PL and the associated assets, which are collectively known as the Stag Oilfield, along with the operatorship of the oilfield.

The Stag Oilfield is a producing oilfield located in the Dampier sub-basin of the Carnarvon Basin, offshore Western Australia and in a water depth of approximately 50 metres and approximately 60 kilometres offshore.

It was discovered in 1993 and commenced production in 1998. As at June 30, 2015, the Stag Oilfield was producing oil with an average American Petroleum Institute gravity of 19 at the rate of 4,600 barrels per day from 10 active wells.

Oil from the Stag Oilfield is produced from horizontal wells and processed through a fixed central production facility platform with 50,000 barrels per day capacity, where it is then transported by pipeline to the Floating Storage and Offloading Tanker (FSO) and loaded to shuttle tankers for shipment to North Asian customers

Quadrant is the current operator of the Stag Oilfield with a 33.33% interest while Santos holds the remaining 66.67% stake.

The completion of the agreement by March 31, 2016 is subject to approval from the Securities Commission Malaysia and the shareholders of Sona Petroleum for the acquisition, as well as notice of no objection from the Australian Foreign Investment Review Board.

The acquisition is also subject to Quadrant Energy Australia Ltd(QEAL) and Sona Australia having signed a transitional services agreement, Dampier Spirit LLC having signed an assignment and assumption document in respect of the “Dampier Spirit” FSO contract with Sona Australia and QEAL, and the sale and purchase agreement being approved and registered as dealing under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Sona Petroleum said that the acquisition will be funded entirely in cash via its internal funds raised from the initial public offering (IPO) held under a trust account amounting to approximately RM525.6 million as at Oct 30, 2015.

The group is also proposing to utilise part of the IPO funds for the Infill Development of the Stag Oilfield. The drilling of infill production wells involves the addition of new wells to the existing fields within the original well patterns to accelerate recovery of oil.

Sona Petroleum has engaged the services of Gaffney,Cline & Associates (GCA), a multi-national energy consultancy company which is a wholly-owned subsidiary of Baker Hughes listed on the New York Stock Exchange to undertake an independent assessment of the reserves and resource estimation of the Stag Oilfield.

Based on GCA’s estimates of the Stag Oilfield, (which take into account the implementation of Infill Development), Sona Petroleum is expected to have access to 13million stock tank barrels (MMstb) of proved (1P) oil reserves, 16.2 MMstb of proved plus probable (2P) reserves and 24.0 MMstb of proved plus probable plus possible (3P) reserves.

Sona shares were suspended from 9 a.m and will resume trade at 2.30 pm.

Agree. Absolutely right, time to focus on warrant. Believe SONA-Wa is a best Deal buy for a quantum leap price movement.

This is a much better deal with 100% control. Indeed Salamander deal is only half ownership, yet with huge investment. Thus this deal will be a good buy & good start with more cash
In hand for better cost management. DS Hadian, this is a good move.

Nov 2015, 09:08
SONA - Trading Halt and Resumption
SONA - Trading Halt and Resumption
ILC-02112015-00001
Kindly be advised that trading in the above Company's securities has been
halted with effect from 9.00 a.m., Monday, 2 November 2015. Trading in the
securities will resume with effect from 2.30 p.m., Monday, 2 November 2015.
Your attention is drawn to the Company's announcement dated 2 November 2015.
Sr Manager, Issuers
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com

Priva displays good show as believes good financial results for announcement in Nov'2015

As mentioned by Hadian in this Focus weekly, Sona got good support and mandate from Credit Suisse & other major shareholders and it is finalising one QA very soon. Thus, if with this QA, both mother and warrant of Sona will soon move to a quantum high price level. Believe that fund managers may consider in pipeline for this Sona as one of investment portfolio with their confidence in Hadian & Team's vast experience in OG industry.

If there is QA, believe it will move up to a new height with quantum leap for limit up price. Currently a lot of people see potential in SPAC. Let's see for announcement soon

Yup, agreed. The way nice1 explained is like a spokesman of Hadian. Frankly, soliciting a QA during current pathetic performance of oil price should be a good bargain. That's why so many investors lost their patience with Hadian. Sigh! Sigh! Sigh!

Bursa announcement dated 24.6.15

Share movement is solely dependable on Dato Sri Dr Jacky Pang Chow Huat. He has final decision as nobody knows whether their MOU with Rofarez will be materislised. The movement of this counter is up to our Jacky Pang, same key person of Sanichi & Etitech which both counters are also very volatile.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4766021
Credit Suisse sold & bought on the same day ie 2nd June 2015

AGM is at Hotel Istana, Mahkota Ballroom 2, No.73, Jln Raja Chulan, 50200 KL on 24 June 2015, time 11.00 am

1) 2nd agenda of AGM is to approve directors' fees for RM435,000.
2) other agenda is to re-elect directors who retire pursuant to article 123 of company's Articles of Association: Datuk Seri Panglima Sulong bin Matjeraie; Andreas Johannes Raymundus Van Strijip
3) to re-elect managing director Dato Sri Hadian bin Hashim who retire pursuant to article 115 of the company's articles of association.
4) also to reappoint Mr Anton Tjahjono in accordance with section of 129 of company act, 1965

Suggest all shareholders to deny their directors' fees as they are not fit to get at all with no effort seen to work to maximize its intrinsic value. To pressure them for their plan as it seems they have no plan at all while delaying or passing time. Whether we are Minor or major shareholders, we must demand for their immediate action to maximize its net asset value. Only then, they will seriously work to solicit qualifying assets before deadline. All shareholders, pls don't wait. All must make yourselves available to seek for their explanation during this coming AGM to prevent this share counter further deteriorating.

Pressure selling from foreign fund managers & institutional players. Take back principal to a stop loss. Hurry up to exit as there is no limit to its down trend.

Suggest to exit with its uncertainty & unstability. Likely it is certain of its continuous dropping with its stake in 1MDB. To be cautious & advisable to stay away till its stability

Malakoff dropped as people concern about its stake in 1MDB. Likely it may drop further to support point at RM1.50 with strong resistance at RM1.30.

Business - The Edge

DGB Asia to join Rofarez Solutions in cloud-based venture
Published: 13 April 2015 5:20 PM


Automated identification and data capture (AIDC) solutions provider DGB Asia Bhd (DGB) will enter into a joint venture (JV) with Rofarez Solutions Sdn Bhd, a Ministry of Finance-linked company, to expand into the cloud-based business.

In a statement today, DGB Asia said the JV entails the distribution, implementation and service of cloud-based business solution products that provide integration on the software environment for businesses with proprietary development engines.

“The product will provide platforms to design and build solutions that are directly assimilated onto the cloud operating infrastructure. The system is also goods and service tax (GST) friendly, as customers can incorporate the new GST requirement into their current system without hassle,” it said.



A memorandum of understanding (MOU) was signed by both parties on April 10, 2015, according to the statement.
DGB Asia said Rofarez will be responsible for the product development activities, while DGB Asia will undertake the JV company’s management and products distributions.

The JV will also involve the development, distribution, implementation and service of the flagship cloud-based business solutions across Malaysia and Southeast Asia.

The new business is expected to generate a substantial increase in revenue and profit for DGB Asia in the coming financial year, the statement further read.

It also noted the finance ministry is a substantial shareholder of Rofarez, while Shell Malaysia is among companies that use Rofarez’s solutions. – The Edge Markets, April 13, 2015

Business - The Edge

DGB Asia to join Rofarez Solutions in cloud-based venture
Published: 13 April 2015 5:20 PM


Automated identification and data capture (AIDC) solutions provider DGB Asia Bhd (DGB) will enter into a joint venture (JV) with Rofarez Solutions Sdn Bhd, a Ministry of Finance-linked company, to expand into the cloud-based business.

In a statement today, DGB Asia said the JV entails the distribution, implementation and service of cloud-based business solution products that provide integration on the software environment for businesses with proprietary development engines.

“The product will provide platforms to design and build solutions that are directly assimilated onto the cloud operating infrastructure. The system is also goods and service tax (GST) friendly, as customers can incorporate the new GST requirement into their current system without hassle,” it said.



A memorandum of understanding (MOU) was signed by both parties on April 10, 2015, according to the statement.
DGB Asia said Rofarez will be responsible for the product development activities, while DGB Asia will undertake the JV company’s management and products distributions.

The JV will also involve the development, distribution, implementation and service of the flagship cloud-based business solutions across Malaysia and Southeast Asia.

The new business is expected to generate a substantial increase in revenue and profit for DGB Asia in the coming financial year, the statement further read.

It also noted the finance ministry is a substantial shareholder of Rofarez, while Shell Malaysia is among companies that use Rofarez’s solutions. – The Edge Markets, April 13, 2015

Yup, a lot of uncertainties. Suggest to buy DGB as it may bounce back soon with possible target to exceed RM0.20 in 2-3 mths. It has a big deal with Rofarez, a co controlled by Ministry of Finance with GST solution.

Likely shares will move up soon with impending announcement of financial results by this month end

Jolin, this ship will sink soon as it is similar like Transmile, Stamford, Saag, & other delisted companies. Yr capital will disappear; not worth to buy further as major shareholders keep on disposing their stake. There is a BIG reason why major stakeholders are selling