GOOD NEWS GUYS! GOOD NEWS GUYS! GOOD NEWS GUYS! GOOD NEWS GUYS!
LET ME WRITE A SIMPLE SUMMARY ON WHY WE SHOULD BUY ARBB 7181 SHARES!
1.) Executive Summary ARB Berhad, provides enterprise resource planning, Internet of Things (IoT), and re-energy solutions in Malaysia.
2.) Market Performance GOOD-- (7 Day Return 19.1%) ( MY IT 4.8%) (MY Market 0.6%)
3.) Valuation Is ARB Berhad undervalued compared to its fair value and its price relative to the market? 2.44xPrice to Earnings (PE) ratio
a.) Price To Earnings Ratio PASS-- PE vs Industry: ARBB is good value based on its PE Ratio (2.5x) compared to the IT industry average (20.3x).
PASS-- PE vs Market: ARBB is good value based on its PE Ratio (2.5x) compared to the MY market (12.9x).
b.) Price to Book Ratio PASS-- PB vs Industry: ARBB is good value based on its PB Ratio (0.8x) compared to the MY IT industry average (1.1x).
4.) Future Growth ARB Berhad forecast to perform in the next 1 to 3 years based on estimates from analysts. PASS-- 83% Forecasted Software industry annual growth in earnings
5.) Past Performance PASS- Until 31 dec 2019 Revenue rm102.644mil / year Earnings rm33.205mil / year Profit margin 32.3% Growing Profit Margin:ARBB's current net profit margins (32.3%) are higher than last year (27.7%).
.
How has ARB Berhad performed over the past 5 years? PASS--58.0% Historical annual earnings growth
a.) Past Earnings Growth Analysis PASS-- Earnings Trend: ARBB has become profitable over the past 5 years, growing earnings by 58% per year.
PASS-- Accelerating Growth: ARBB's earnings growth over the past year (684.6%) exceeds its 5-year average (58% per year).
PASS-- Earnings vs Industry: ARBB earnings growth over the past year (684.6%) exceeded the IT industry 17%.
6.) Return on Equity
PASS-- High ROE: ARBB's Return on Equity (27.5%) is considered high.
7.) Financial Health
How is ARB Berhad's financial position? PASS-- Short Term Liabilities: ARBB's short term assets (MYR75.7M) exceed its short term liabilities (MYR1.1M) = TOTAL(MYR74.7M)short term assets
PASS-- GEARING (RM0) MEANS A COOL 100% DEBT FREE COMPANY!
8.) Debt to Equity History and Analysis PASS-- Debt Level: ARBB's debt to equity ratio (0.1%) is considered satisfactory.
PASS-- Reducing Debt: ARBB's debt to equity ratio has reduced from 3.5% to 0.1% over the past 5 years.
PASS-- Interest Coverage: ARBB's interest payments on its debt are well covered by EBIT (509.3x coverage).
MORE GOOD NEWS GOOD INVESTORS OF ARBB 7181 !!! ARBB (7181) has 5 main Pillars (AND THIS IS NO CRYSTAL BALL NEWS)
1. Pillar number One
ARBB (7181 ) is doing IOT and others
THE Main focus for investing in ARBB(7181)is because of RM210 million was allocated under the programmed to encourage transition of businesses to Industry 4.0 technology from 2019 till 2021.
2. ARBB (7181) is doing ERP SYSTEM and others
AFTER MCO ARBB JV COMPANY WILL BRING TONS OF CUSTOMERS & CA$H RAINING IN (100% CONFIRM)......
3.ARBB (7181) is going for gov project
CONTRACT WILL BE SIGNING WITHIN 4 MONTHS........AT LEAST 2 GOV PROJECT! (70%CONFIRM!)........
4.ARBB (7181) is going overseas U.S COMPANY Caravan Capital Management LLC IS INVITING ARBB PERSON IN CHARGE GOING AMERICA TO ATTEND ROADSHOW! BECAUSE Caravan Capital Management LLC arranging many U.S BIG COMPANY RECOMMENDED INVEST INTO ARBB...... (100% CONFIRM)........
MORE AND MORE FOREIGN COMPANY WILL SAPU ARBB SHARES (100% CONFIRM).......
5.ARBB(7181) is related to gov...........RECENTLY. WHICH GOV PARTY? DON'T ASK!!!!!! WILL NOT ANSWER!!!!!! (100%CONFIRM).........
THE rest are side dishes
Year 2020 will see ARBB (7181) turn into a Red hot bull run stock of IR 4.0 INDUSTRY just like OGSE was for 2019!
BUY NOW ARBB (7181) BEFORE THE PRICE SHOOTS UP!
ARBB YEAR END TP RM1.00==ARBB YEAR END TP RM1.00==ARBB YEAR END TP RM1.00
"Kindly be advised that ARBB’s securities will be reclassified under the new sector and sub-sector with effect from 9.00 a.m., Monday, 13 April 2020.
Current Sector: Industrial Products & Services New Sector: Technology
The Stock Number and Stock Short Name of ARBB remain unchanged. Announcement Info Company Name ARB BERHAD Stock Name ARBB Date Announced 08 Apr 2020 Category Listing Circular Reference Number ILC-08042020-00002"
any stock below rm1 cheaper for practive any stock with positive eps and net profit with uptrending net profit so that at least if you enter and it goes down for a while you can keep hoping it will do a reversal
PB figure is one of "weakest" indicator, and nowadays market doesn't emphasis too much on book value issue.
Market cares more about company on going forwards profitability and dividend yield. Book value is something only good of viewing only.
Also, book value can be wiped off instantly, if a particular company business is out of favour or drastic changing business environment/industry.
Nowadays, we needs to look at specific company with specific purpose, generating a list of low PB, PE and think those at top list one good for investing, is a dangerous method and can easily fall into so called PE and PB trap.
Wah this creep Mr HOHOHO, i am Not in position or suitable for me to recommend any specific stock
Generally, those large cap tech stock or follow Dato Liew our Prosperity God and with stable outlook are my watch list. 1.Arb 2.Ageson..........3.plantations
lolz.......... from billion to million...so that kinda means airline business is not that profitable? So weird,seeing how many ppl go for overseas trips all d time......
The biggest problem is contraband cigarettes. More than half of cigarettes sold in Malaysia are now smuggled, paying no tax to the government but selling as the real deal and making huge bucks.
Malaysians buy 1,000 illicit cigarettes a minute to avoid tax
Malaysia’s move to stub out tobacco use with higher levies has pushed smokers to the black market instead.
The Southeast Asian country has the world’s highest share of illegal tobacco sales at 59% of its market, with 1,000 illicit cigarettes bought each minute, Oxford Economics said in a report commissioned by British American Tobacco Plc.
That has cost the government 13.5 billion ringgit ($3.3 billion) of revenue in unpaid taxes since Malaysia raised excise duties on cigarettes in 2015, according to the report.
The finance ministry didn’t immediately respond to questions on the state revenue loss.
Malaysia has sought to curb smoking-related illnesses, such as cancer and cardiovascular diseases, which are the main causes of premature death in the country, according to the health ministry.
About 22.8% of Malaysians aged 15 or older are smokers in 2015, a slight decline from 23.1% in 2011.
BAT’s Malaysian unit has long campaigned against excise increases by warning that it would worsen the illegal tobacco trade, which the company said is a key reason for its shrinking sales volume.
Its revenue fell 3.2% in 2018 on declining sales of cigarettes and contract manufacturing after it closed a factory near the capital Kuala Lumpur.
The company’s rival Japan Tobacco Inc. shuttered its Malaysian plant in 2017 and bought stakes in Indonesian and Philippine producers that same year.
The study commissioned by BAT showed about 598 million packs in Malaysia were illegal in 2018. Nearly half of the consumption were "illicit whites” that are smuggled into the country from neighboring Indonesia, Philippines and Vietnam due to cheaper prices.
Others include illegal "kretek”, or clove cigarettes, and packs with fake tax stamps. - Bloomberg
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....
persie
1,412 posts
Posted by persie > 2020-05-06 09:29 | Report Abuse
A new hight will be recorded in coming week. P/E below 3 is still very cheap..