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.

toyota18 ThegreedZ because its fake....

u really stupid, price down then is fake? i wanna see if genting price drop, u will say is FAKE not!

ppl sell shares to gain profit, of coz price will go down la! u 1st time play shares trading ah?
ppl convert and sell of coz price drop also de ma! When conversion close, no 1 will sell d.

Sell your own arse that time.


Oh well..because some people cannot afford to lose thats why they kept spreading rumours that the company is fake.

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

therainmaker Dear Friends & Investors,

Many people are afraid to lose money. They want to sleep soundly every night.

So am I. I am just as fearful as everyone else losing money. Therefore, let me recommend you
"PRESENTING ARBB (7181) THE GOOD STOCK FOR INVESTORS"

Why is ARBB (7181) GOOD?

These are my Reasons:

1) ARBB HAS LOW DEBT

Current Liabilities/Non-Current Liabilities

Borrowings -................. - (near to RM15,000 as at 2Q)

If a company has no borrowings or low borrowings can they go bankrupt if you don't owe money to bank, friends or financial institution?

Their cash in the bank is more than enough to cover all their liabilities.

No one or Company can be low in debt, SO ARBB IS A STOCK ON WHICH YOU CAN BUY AND SLEEP SOUNDLY.

2) HIGH NTA

I do not know why so many analysts or retailers start to use NTA as a valuation-base. I used to heard of PER being popularly used, perhaps ... P/B too. But NTA? Why every tom-dick now talking about the NTA of companies when we are trading/investing? Who started the NTA game? The NTA of ARBB is HIGH NTA value ... therefore, it is under-valued.

Price/NTA = 106.1%

*The closing share price taken is at end June.

So WHY NOT BUY ARBB? GO AHEAD.

To me, I’m all in ready for the spike!

Thanks rainmaker for your analysis. Indeed this co is still new and undervalue, growing company is normally a buy call. With the government support in the future IT development in Malaysia, IT stocks should go up. Giving it sometime and support for this co.

so many buy call today. Im waiting for it to go up! bounce before results out

KennyChua FaatihBinKanaan woo la la~ arb boleh boleh boleh~ skrg PE brpa ni

Hi Faatih PE is very much UNDERVALUE at 4X. AND THIS COMPANY IS GROWING!!

BE PATIENT OF THE GOOD RESULTS OUT!!!

Digital Economy is the future as malaysia still yet to be a developed country!!!

Yeah agree with u kenny..digital economy is the future.

IOTSEPCM located at Kuala Selangor, signed with Perkasa Selalu S/B (about 60million), high rise condominium, location near to McDonald.

WITH IOT SMART HOME LIVING, and the housing price range there is quite cheap as u can see from this link

https://www.edgeprop.my/area-outlook/selangor/kuala-selangor?district=Kuala+Selangor

So I guess we don't have to be worry on the oversupply of the properties.

mind sharing?

any budget from the gov benefits?

Holla. im back. lol..been long..why suddenly so many thais?

The Smart Home market constitutes the sale of networked devices and related services that enable home automation for private end users (B2C). Considered are devices that are connected directly or indirectly to the Internet. Their main purposes are the control, monitoring and regulation of functions in a private household. The worldwide revenue of US$58 billion in 2018 is expected to increase to US$141 billion by 2023.

-Just for sharing

strong willpower.

still not giving up wor...

still the same jokers here....wandering around nothing better to do...lol

holla..i am back

magni ok

good good...

kaobeh kaobuuu

byebye

then close the other.

close one eye

no eye see

huhuuu

good buy

seems like everyone is moving on..huhuu

not much liquidity.

yeah stock not moving much today

today arbb no pwr...not much trading vol

very quiet day. :) Youre right kenny. Made quite some profit out of it and good enough for me. But still have some diverse my risk of investment.

I think our bro here is the one that said there are a few of us creating fake account?

i think we should have a gathering

hard headed! hahahaha

spread some love by sharing please~some social resposibility after u earning much like william

lets share..sharing is caring...

how many stocks u wanna collect?

What is your lowest target price? can tell me?

everyday we are monitoring the price...

seems like we all never give up on arbb counter

hi chris shemale khoo

Wow. Why so emotional? Ever heard of the lesson of a glass of water? And u know what’s the moral of the story? Let me share with you.... The moral of this story, they write, is: “It’s important to remember to let go of your stresses and worries … Don’t carry them through the night and into the next day with you. If you still feel the weight of yesterday’s stress, it’s a strong sign that it’s time to put the glass down.”

gg

4.4 pls...am happy and enough for today!

Why don’t u buy? No balls to buy isit? Next qtr results revenue 25mn don’t regret when arbb fly high. Malas nk argue ngan orang yg degil. Lantaklah org camni

More like Chris is being paid to burn ARBB. And drag everyone down then he can be the next millionaire. What a jerk move.

How u check our IP?? Lai lai.. tell us... I can confirm it’s different IP though. Show us evidence before u talk...don’t tokok

Seems like Jackson another Private investigator...debate lai liao...hahahahahaha..time to eat popcorn?

All I read mostly is just positive comments for this counter but only Chris has been burning..I have no personal attack whatsoever but seriously this counter has been an eye for me for a very long time...I really have no idea why would he not giving up bring the entire boat down the sea...just be extra careful when trade..if cannot take the risk better don’t invest on this stock..like others said there are still so many other counters..why personal attack a good company which is undervalued with low PE? And growing earnings?

Net cash already so much also in the company I don’t see any worries on the stock?

Independent auditor from 3rd party to audit the company I don’t see it as an issue?

And still got another 2 quarter...u sure they won’t get audited by auditor?