Hi all, good morning. With the implementation of GST next year, we have seen many companies benefiting shooting up the roof such as IFCA and YGL. Today, i want to uncover a GEM that could potentially be a MAJOR beneficiary once GST is implemented.
Lets begin with a brief history on DGSB. DGSB was formed in 2011 as a result of a merger between ISS Consulting and DGB(formerly owned by Formis Berhad) by way of issuance of new shares of ISS Consulting to the shareholders of DGB.
ISS Consulting- ISS Consulting is a Management and Technology consulting firm, that specializes in the implementation of SAP enterprise solutions. Founded in Malaysia in 1997 with our headquarters in Kuala Lumpur, it is our commitment to bring the best SAP solutions to our customers. Listed on the ACE Market, Bursa Malaysia in 2006, we have successfully implemented over 200 SAP projects in various industries with 150 SAP experts across Malaysia, Singapore and Thailand.ISS Consulting offers an extensive range of solutions in Enterprise Resource Planning, Supply Chain Management, Supplier Relationship Management, Business Intelligence, Analytics and Enterprise Mobility.
DGB Bhd- DGB is a subsidiary of Formis Resources Berhad (FORMIS). Incorporated in 1994, DGB’s initial business focus was supplying networking solutions to small and medium-sized offices and home users.Today, DGB is a full-fledged Networking System Integrator, with staff strength of more than 70 people.DGB’s goal is to be a premier provider of a full range of tele/data communications solutions in LAN, WAN, transmission, switching, and Operations Support Systems. Toward this end, DGB is capable of providing services such as requirements studies, network design, installation, commissioning, maintenance, consultancy, project management, operation and management, outsourcing, and turnkey. DGB is dedicated to serve its customers as a single source of network solutions, providing complete networking solutions that satisfy customers' short- and long-term networking needs.
DIVERSIFIED GATEWAY SOLUTION BERHAD(DGSB)
Today DGSB has matured into one of the the few companies in Malaysia that has extensive experience and success in providing a comprehensive suite of communications networkrelated services such as requirement studies, network design, installation, maintenance, consultancy, project managementand operations and management for large carrier and enterprise networks in Malaysia. The company currently has a market cap of RM88m and is controlled by Omesti Bhd, previously known as Formis Resources BHD (60.03%).
So what is so interesting about DGSB and how will it benefit from GST
DSGB is today one of the largest SAP Consultancy company in Malaysia providing implementation to many corporates. SAP is a huge listed German company that makes enterprise softwares. Being a partner of SAP, it gives DGSB the leverage it needs to benefit from the implementation of GST. Two of the softwares that DGSB promotes are namely SAP All Solution in One and SAP Business Suite which are priced from as low as RM1000/month. With the upcoming implemention of GST, many of these corporations would be required to upgrade their systems and this is where the expertise of DGSB is needed.
Lets look at the financials of the company
From a loss making company , DGSB has slowly turned around to be profit making.
As you can see, revenue increased by 64% quarter on quarter, and profit for the company jumped from a loss of RM951,000 to a handsome profit of RM3,682,000. Going forward, we can expect DGSB to show steady revenue growth and also bumper quarters for the company from the implementation of GST. Given that DGSB continues to rake in 0.27c every quarter, PE will be at around 7x when annualized.
I give a target of RM0.12 for DGSB implying a PE of 12 which is reasonable. From current price, upside for DGSB has a potential upside of 70%.
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haha even 1 petronas upgrade already enough. so many subsidiaries under petronas. Their relationship with petronas is very good. Even their HQ is at Menara Petronas 3
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
mazda626
358 posts
Posted by mazda626 > 2014-10-24 11:33 | Report Abuse
Banyak nakal, play 1 batang 1 batang .....LOL.