Posted by k8118k > 2015-10-27 12:26 | Report Abuse

problems with renewals. Instead, it is RGB that usually opts to leave
unprofitable outlets.

Posted by k8118k > 2015-10-27 12:27 | Report Abuse

RGB has tied up with AB Leisure to introduce Bingo machines in the
Philippines. The 431 Bingo machines installed so far have been popular
according to the company. There is no capex on RGB’s part as it is a three-way
tie-up with the manufacturer supplying the machines.
Outlook
Beneficiary of gaming liberalisation
Management believes RGB is well positioned to benefit from the increasing
liberalisation of casino and gaming clubs in emerging Asian countries,
particularly Philippines, Cambodia and more recently, Laos, Nepal and Timor
Leste.

Posted by k8118k > 2015-10-27 12:27 | Report Abuse

SSM saw a 25% drop in 1H15 revenue yoy due to the high base effect in 2014
from new orders in the Philippines for the new integrated casino there. But
pretax profit rose 21% on the sale of higher-margin products and favourable
exchange rate. In 1H15, the SSM division sold 387 units of gaming machines.
The company is targeting sales of 1,400 machines for the full year, which
implies another 1,000 units in 2H15. Management guided that the orders for
these units have been secured and is waiting the timing of delivery of the units.
TSM was the best performer, as revenues rose 20% and pretax profit rose 55%,
driven by 1) new outlets in Nepal and Timor Leste, 2) favourable exchange rate
and 3) cessation of the loss-making Macau operations in 1H14. For the TSM
division, RGB is looking to add another 500 bingo machines and to make it a
total of 7,000 machines for TSM by mid-2016.
1H15 net profit came in at 48% of the Bloomberg consensus estimate, but
given the stronger 2H15 SSM pipeline, the company expects 2H15
performance to improve.

Posted by k8118k > 2015-10-27 12:27 | Report Abuse

Long-term outlook
Nepal and Timor Leste are the two newest markets that RGB has entered, which, according to management, promises good long-term potential, if RGB’s partners are able to resolve licensing issues with the respective governments. In Timor Leste (started in Feb 15), RGB operates one outlet on a revenue share basis while in Nepal (started in Apr 15), RGB receives a fixed fee. The bigger game plan in Timor Leste is to wait for better clarity on the permanence of licences before adding new outlets. In Nepal, RGB ultimate aim is to enter the slots market in the Kathmandu casinos (there are 3-4 casinos in Kathmandu), which is again dependent on clarity of the licensing regime.
Management guided for organic earnings growth of 5-10% per annum based on existing operations, which is in line with consensus estimates. This does not take into account additional new outlets in new countries such as Timor Leste and Nepal. Management estimated that every new outlet in Timor Leste and Nepal could add 5-10% to EPS per annum.
Financials
A repaired balance sheet
RGB’s balance sheet was badly damaged from 2009-14, when it raised RM100m in borrowings (at 10% interest rate) to fund a new casino venture in Cambodia, which eventually failed. It has since restructured the interest rate down to 7% and has gradually repaid the loan on a quarterly repayment schedule. A recent share placement in May 15 raised RM17.8m,RM10.2m which will be used to further pare down debt while the balance RM7.6m will be used for the purchase of new gaming machines, according to management. Combined with healthy operating cashflow and low capex, RGB’s balance sheet has been fully deleveraged and was in a net cash position as at end 2Q15.
Management guided that it generates RM50-60m in EBITDA annually. After accounting for annual capex requirements of RM15-20m per annum, RGB is generating strong free cashflow per share of RM30-45m a year.
The company’s effective tax rate is between 8-13% depending on locations of SSM sales for the year (2.5-3.8 sen/share).
While the company does not have a dividend policy, dividends have been rising gradually since 2014, and management is looking to continue raising dividend payout as debt continues to be pared down.
Valuation
One-broker coverage
There is currently only one broker that covers RGB. Based on Bloomberg consensus EBITDA, the stock trades at 2.9x FY15 EV/EBITDA. The largest US-listed gaming machine companies are manufacturers of slot machines such as Aristocrat Leisure and Scientific Games Corp, which are 25-100x larger than RGB. We consider its closest peer to be Entertainment Gaming Asia Inc. (listed on NASDAQ with market capitalisation of US$32.5m), which runs a revenue-share gaming machines model in Cambodia and Philippines. Entertainment Gaming trades at an annualised 1H15 EV/EBITDA multiple of 2.9x.

Posted by topseeker > 2015-10-27 13:49 | Report Abuse

wah k811k, good information. u buy alot is it?

Posted by Yap Chi Fai > 2015-10-27 14:51 | Report Abuse

hahahahaha, 'u buy alot is it?'+1

Posted by chin928 > 2015-10-27 15:04 | Report Abuse

" Management guided that it generates RM50-60m in EBITDA annually. "
" RGB is generating strong free cashflow per share of RM30-45m a year. "

High directors pay. Tiny dividends.

Result : Price cannot go up.

Posted by muffinman8888 > 2015-10-27 15:53 | Report Abuse

finally RGB is moving

Posted by paperplane2 > 2015-10-27 22:51 | Report Abuse

The problem of kesm is low circulation in shares. Rgb vice versa

Posted by paperplane2 > 2015-10-27 22:52 | Report Abuse

1239516000 shares

Posted by paperplane2 > 2015-10-27 22:52 | Report Abuse

30mil to 45 mil is0.024~0.034

Posted by paperplane2 > 2015-10-27 22:53 | Report Abuse

Xp/e10=0.24~0.34

Posted by paperplane2 > 2015-10-27 23:05 | Report Abuse

What I like most, borrowing reduced quarters to quarter from 66877 to 58383 to 50020

Posted by paperplane2 > 2015-10-27 23:06 | Report Abuse

Reducuing consistently 8mil a quarter! See how strong cashflows are!

Posted by paperplane2 > 2015-10-27 23:17 | Report Abuse

So from June15 another 6 quarters to go into total debt free! Now actually with cash in hand can payout all borrow8ngs!
So, if 8mil a quarter used to pay div=0.006, 2 quarters 0.012. 3% to 7% potential div yield

Posted by chin928 > 2015-10-28 09:04 | Report Abuse

@paperplane2
I agree. If 1 sen dividend, company only need to pay out RM13m. A 3% yield and the share price will be over 30 sen. So far only winner are the directors. Their pay and stock options are way above the total dividends paid out.

Posted by k8118k > 2015-10-28 09:07 | Report Abuse

i hold zero shares.

Posted by surewinz > 2015-10-28 10:01 | Report Abuse

rgb looks like gonna rock the world again =)

Posted by shan75 > 2015-10-28 11:03 | Report Abuse

0.165 - 0.185 in this range for almost 3 years, enough gimmick!

Posted by Johnny Mah > 2015-10-28 15:02 | Report Abuse

go back 0.155 or 0.160 and restock.

Posted by stocknewbie1 > 2015-10-29 09:08 | Report Abuse

Write a comment..dy.... 3 years 30sen....

Posted by Johnny Mah > 2015-10-29 11:10 | Report Abuse

need 3 years to double?

Posted by noeyesee23 > 2015-10-29 11:18 | Report Abuse

3 years = 0.60. If not, that clown better dig hole and stick his head in it.

Posted by niatfaez > 2015-10-30 09:32 | Report Abuse

Apaa macam ini counter

Posted by stncws > 2015-10-30 10:11 | Report Abuse

28/11 reporting!!!

Posted by PassBy > 2015-10-30 10:11 | Report Abuse

Day show coming.. ?

Posted by soso9999 > 2015-10-30 10:17 | Report Abuse

very obvious

Posted by niatfaez > 2015-10-30 10:31 | Report Abuse

Show coming???

Posted by soso9999 > 2015-10-30 10:32 | Report Abuse

try push lo, many seller too

Posted by niatfaez > 2015-10-30 10:42 | Report Abuse

30cent pls

Posted by paperplane2 > 2015-10-30 10:45 | Report Abuse

ALL IN !!!!!!

Posted by novice321 > 2015-10-30 11:00 | Report Abuse

Gloves ( Top Gloves ), garment (Magni Tech ), electronics ( Globetronics ), furniture ( Homeritz ) all RM beneficiaries reporting record profits, paying record dividends and recording new highs.

RGB - learn from them lah !!!!

Posted by shan75 > 2015-10-30 11:01 | Report Abuse

novice, they will pay u peanuts!

Posted by novice321 > 2015-10-30 11:03 | Report Abuse

That's the problem. They treat us, their minorities, like monkeys.

Posted by paperplane2 > 2015-10-30 11:22 | Report Abuse

hehe

Posted by paperplane2 > 2015-10-30 11:22 | Report Abuse

why call yourself monkey

Posted by novice321 > 2015-10-30 11:38 | Report Abuse

Ha ha - If they give us peanuts like shan75 said, then they must be treating us like monkeys. But we are Orang Utans making lots of noises here. Ha Ha

Posted by taipingbear > 2015-10-30 11:41 | Report Abuse

Lol top volume again ....hope the panic seller and selling wave ended very soon ....Otherwise again i will delete from my watch list .

Posted by surewinz > 2015-10-30 11:49 | Report Abuse

Paperplane can you share your near term tp view on this stock?

Posted by paperplane2 > 2015-10-30 11:52 | Report Abuse

NO NEED WAIT, So huge volume indicate something liao, 1st 0.20 resistance to challenge soon

Posted by paperplane2 > 2015-10-30 12:01 | Report Abuse

I shared many info earlier mah, some others also shared.

In summary:
1.borrowing reduced quarters to quarter from 66877 to 58383 to 50020
2.So from June15 another 6 quarters to go into total debt free! Now actually with cash in hand can payout all borrow8ngs!
So, if 8mil(now used to pay debts quarterly) a quarter used to pay div=0.006, 2 quarters 0.012. 3% to 7% potential div yield
3.using latest results,Xp/e10=0.24~0.34. see? P/E10-0.24 TP at least.
4.not withstanding above, we have noticed good results coming....so??

Posted by itlim67 > 2015-10-30 12:06 | Report Abuse

Buy buy buy.. huhu..

Posted by soso9999 > 2015-10-30 12:22 | Report Abuse

you guys happy now ^^

Posted by paperplane2 > 2015-10-30 12:32 | Report Abuse

hehe

Posted by surewinz > 2015-10-30 13:09 | Report Abuse

Thanks paperplane :) hope everyone huat

Posted by novice321 > 2015-10-30 13:12 | Report Abuse

Thanks, soso9999, for your tip on XOX.

Posted by mhchai > 2015-10-30 13:12 | Report Abuse

0.25 coming !

Posted by mhchai > 2015-10-30 13:13 | Report Abuse

after that 0.3x, like escerm

Posted by ewawa > 2015-10-30 14:37 | Report Abuse

Join the boat

Posted by soso9999 > 2015-10-30 14:52 | Report Abuse

what price you join?