Posted by dessmond1 > 2021-07-10 01:53 | Report Abuse

Fair points, but I think what was different with SERBA is the business model. To quote your point:

"From my understanding, the company will first sign a contract with their client to provide ERP service. The contract will state that ARBB will setup ERP service for their client without charging them. Then, ARBB will set a sales target to achieve after the implementation of their ERP service. If ARBB achieve the sales target, their client will need to share profit with ARBB."

This is correct, and with the pandemic strikes, i would also like to point out that some clients of ARBB are brick & mortar related. Hence, the trade receivables should be short lived and recovering in next few quarters. But next quarter might get impacted by the MCO.

Posted by Bgt 9963 > 2021-07-10 08:56 |

Post removed.Why?

Posted by reloyee > 2021-07-10 08:57 | Report Abuse

Yes, I agree that they have different business model and ARBB is definitely in a better position than Serba because ARBB has not much debt. Serba will bankrupt if their receivables are fishy, ARBB might not.

I disagree that their receivables are short lived. Their receivables set up to be long lived because of ARBB's business model. We cannot view ARBB as normal business that collect cash from clients when their client's cashflow become better, because of the nature of their business model.

They can only collect cash when their client grow until they achieve the target, I doubt that will happen in the next few quarter. SME business can only grow after they recover, and the next few quarters are recovery time.

What we should monitor is actually whether their software/technology is actually that great, and the performance of their clients business. But their management never share any details about their business operation & client business before.

Posted by alenac > 2021-07-10 09:10 | Report Abuse

hahahaha HQ in Tawau, Sabah, prospects weak?

Posted by firehawk > 2021-07-10 10:15 | Report Abuse

What ..? Base in Sabah, how about their clients? in Sabah too?