therainmaker ARBB - A former wood-related business but transformed into an IT business. Currently, the IT business is the largest profit contributor.



Performance:
Turnover: RM33.9m YoY rose 792.7% QoQ rose 200.9%
Net profit: RM 8.3m YoY rose 4359.1% QoQ fell 3.7%



Main Reason:
Compared with the same quarter last year, ARBB's turnover increased by 792.7%, mainly contributing to IT business, about 99.7%. This also led to a rise in profits.



Compared with the previous quarter, the 2019 Q3 turnover mainly contributed to ARB Development Sdn Bhd and ARBBOIT Sdn Bhd.



The two subsidiaries mainly sell ERP (Enterprise Resource Planning) software, IOT, Internet and consulting services.



Future Prospect:
Previously ARBB was a wood-related business that was suspended during the quarter but will be relaunched again in Dec 2019.



For the IT department, the subsidiary ARB Development Sdn. Bhd. already has a contract and has already started in 2019 Q3. The contract is expected to be worth approximately USD 20mil. Management believes that it will attract more potential and interested customers in the future.



EPS:
At 2019 Q3, ARBB's profit was 3.54 cents recorded on RM 8.3m EPS. Compared to the previous quarter, ARBB earned up to RM 8.6m, but EPS recorded 6.54 cents.



Almost the same profit, but the EPS is so much different. The main reason is that too many "Conversation of Preference Share" caused the EPS to be diluted.



Although the company's earnings are good, for long-term EPS dilution, this will adversely affect the stock price. After all, more and more shares will lead to lower and lower EPS. In theory, the stock price will gradually decline.



To understand the further detail on the ARBB Preference Share conversion:



Preference Share is considering a stock for the shareholders. Usually preferred stocks have some special offers, such as dividends.

Preference stocks are not equal to ordinary shares. Therefore, EPS does not need to be included in Preference stock.

And since earnings per share (EPS) is a measure used to measure the return on ordinary stock. Therefore, stock exchange websites and software in the calculation of EPS will not be included with the Preference stock.

ARBB has released a maximum of 1,008,150,000 preferred shares on Dec 18, and shareholders were able to convert into (1) 20 Preference shares convert into 1 ordinary share or (2) conversion price of 20 cent per Preference Share.

In the past few months, shareholders have been converted Preference shares into ordinary shares at 20 cents. It has already converted 179,666,400 units, and balance of 828,483,600 units.

As of today, ARBB's shares are 246,876,400 units, assuming the remaining 828,483,600 Preference shares are converted into ordinary stock. ARBB's shares will be as high as 1,075,360,000 units.

In the latest 4 quarters, the company's profit is 26.943m, the number of shares is 246.8m, and the EPS will be 10.91 cents. Calculated at a price of 38.5 cents, PE will be 3.53

If the company can remain its performance in 3Q19 (8.3m), it will be as high as 33mil in the whole year. Based on the maximum number of shares (1,075,360,000), the EPS will be 3.09 cents, the stock price is 38.5 cents, and the PE is 12.48.
06/11/2019 2:35 PM

Counter might fly soon for 2nd wave, might going to sign contract soon

ARBB is not just ERP alone

ARBB has 3 major divisions, ERP, IOT and RENEWABLE ENERGY

1. ARBB has YESS Communication of which generates the highest earnings as they are expanding their outlets. RM20 mil value of ERP project.

2. JV with Perkasa Selalu S/B for RM78mil in Kuala Selangor for IOT smart living.

3. Contract with IJ Ventures S/B for IOT projects of RM18mil.

This quarter result alone already made how many millions in profit? Calculate yourself.

3. ARBB also puts in money in to the bank for FD with regular passive income

So ARBB has both passive income from and also from proactive projects of ERP, IOT

This makes ARBB a Company with Deep Value assets with powerful earning catalysts

Best of all is the undemanding low price now in view of its deep value assets yet to be revalued plus high growth potential

The crowning glory will be a new trend to make it exciting for investors.

So, why GIVE ME A REASON WHY DONT BUY ARBB?

WITH SUCH A GOOD COMPANY FUTURE AND ALSO GOOD EARNINGS COMING IN AND ALSO MORE INCOMING PROJECTS COMING IN.

INVEST ARBB WITH CONFIDENT.

>>>>>>>>>> Niceeeeeee. I made profit outta it too..still waiting...still holding on it

AGREEE!!

zul day day come talk same thing.. every day one time..

today edi reach 0.47 highest...set order earlier ma

i realize when faizal appears, zul also appear tgt. same user?

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

mother seems to be very strong support now 0.48

coz cimb cacat?

haha carimin~currymee,realy almost same pronounciation

who is kyy?

Any thoughts about this what this guy saying? Please give some opinion. so price likely hit rm1?

Posted by stockjobber > Mar 4, 2019 09:51 PM | Report Abuse. In the latest QR, they reported a revenue of 6.92m and a gross profit 6.14m ie, their profit margin is close to 90% for IT (Enterprise Resources Planning) business, now with recurring Yes Comm 20m and Perkasa Selalu 78m contracts, this hidden jewel will fly all the way to RM1 !! Tell me what type of business can generate 90% gross profit....? Only Aturmaju can ! Time for analysts to take a serious look and its poised for an upward rerating soon

actually is 2 option here for now.
Option 1: buy icps
option 2:buy mother

When to buy :
IF you choose to BUY NOW: u buy now while the price is still low then if q4 result is making profit, price will likely shoot up high, then by that time u can either buy more or sell at good price = you earn more.

IF you choose to BUY AFTER q4: that time might have a lot ppl buy (provided that q4 earn $), so u might bought at a higher price compare to now, and u either hold until price increase more or little = you earn lesser

lets hope what you say becomes true

why sap price drop

whats ma20 and ma200?

no wonder price went up, got news

bought in at 0.975

still 0.20 so far

how confident gamuda will get ecrl contract?

hi, where is your bungalow in melaka, can i come over too and you got telegram or channels that has followers?

nice, i like to see more green

0.285 now, expected to drop to 0.23?

interesting. this is a good read

should we buy?

fbm expected to bounce back?

so buy or sell?

interesting, but it will drop back down right?

ok bought some, now waiting for good news

why did fcpo trade in a tight range?

so this means it is looking good for fpi in 2019?

morning, any advice on myeg today?

5 sen possible?

possible to break 1.0?

wah nice can earn more if climb higher

hi jordan, looks like we analyse the same good stock here. When you started to buy in?

lol nice sharing. good luck on where you go next :)

agree, holding steady for now

wah nice info. thanks for sharing

nice climb higher pls

aax going up but airasia going down? why?

airasia expected to climb back up soon?

cool inari surviving after apple news

sapura safe enough to hold for long term profit

gonna hold on to myeg and wait it climb high

advice for armada?

oo..any sign or news to suggest it will bounce up?

oh nice can buy in

wah sure? will buy if really true

waiting to drop lower then buy

This one good to buy more or sell?