KUALA LUMPUR (Nov 2): Educational material publisher Sasbadi Holdings Bhd has inked a distribution agreement with Marshall Cavendish Education Pte Ltd (MCE), which is principally involved in providing K-12 educational solutions in Singapore.
Under the agreement, MCE grants Sasbadi’s wholly-owned unit Malaysian Book Promotions Sdn Bhd the exclusive right to market and sell, including by way of direct marketing, certain titles published by MCE, in Malaysia.
They include textbooks, workbooks, teacher resources, and supplementary and general materials. The agreement will take effect from Nov 1 and will last till Sept 30, 2020, Sasbadi’s Bursa Malaysia filing today showed.
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Headquartered in Singapore and incorporated in 1981, MCE also has offices in Hong Kong, Thailand, Chile and the United States.
To date, its solutions have been adapted into multiple languages and used in over 60 countries, including in private and international schools in Malaysia, Sasbadi said.
MCE may renew the agreement for subsequent periods of two years each, at its sole discretion, based on terms and conditions to be mutually agreed by both parties.
Sasbadi said the new agreement is expected to contribute positively to its earnings and net assets during the duration of the agreement.
Its share price fell 0.5 sen or 0.63% to settle at 79 sen yesterday, giving it a market capitalisation of RM331.09 million. The counter has declined 15.96% from 94 sen on Jan 2.
this is in regard to the whole education system in this country.
The students will still need more practice by doing more exercise if they want improve. Even the school cannot set this as mandatory, the parents will still buy for their children as revision.
In short term this education system cant change much. We cannot expect the children learn like oversea country where they may not even have exercise book to use. i doubt the teachers are prepared for this kind of teaching in western style. Well, i dont think this going to happen overnight!
Looking at the facts the gov is going to build more primary schools. and our population has grown to new record. SAS will still in good position to sustain growth.
SAS core business is still very much in it's print publishing, namely sasbadi sdn bhd and malaysian book promotion sdn bhd, contributed to the bulk (approx. >70%) of it's revenue.
However, the sales from these 2 subsidiaries dropped more than 11.80% year on year. Cost increased and sales dropped, sounds like mismanagement to me.
I make my decision based on the financial figures, it's like the medical report of a person after a medical check up. A medical report tells you whether a person is healthy or has cancer. Similarly, a financial report tells us whether a company is healthy or not.
Based on the latest quarter financial report, thereis a big loss before and after tax. Revenue has dropped tremendously but cost has incteased significantly, hence leading to a nett loss.
From the financial report, I cant say that the company is healthy. And there is a very high percentage of internal billing, i.e. the revenue contributed by internal company selling to another internal company. These are essentially not revenue because they are not generated from customers. For example in Q4 2016, the internal billing amounted to more than RM9,772,000, which is about half of the total revenue.
From I what I see in the financial report, Sanjung unggul gives a gross profit of RM5,779,000 in financial year ended 31 Aug 2016. But this gross profit dropped to RM5,421,000 in financial year ended 31 Aug 2017.
My question for the management is: "Why make an acquisition decision that is not benefiting the company?" You paid RM9,400,000 to Law En Tzer, who coincidentally happens to be the family member of the managing director, but that decision resulted in a reduced income for the company.
Thank you@Thepainfultruth! i need to study the financial report again and according to your explanation to Quan, it this mean they are transferring company money out for they buddy!
From I what I see in the financial report, Sanjung unggul gives a gross profit of RM5,779,000 in financial year ended 31 Aug 2016. But this gross profit dropped to RM5,421,000 in financial year ended 31 Aug 2017.
My question for the management is: "Why make an acquisition decision that is not benefiting the company?" You paid RM9,400,000 to Law En Tzer, who coincidentally happens to be the family member of the managing director, but that decision resulted in a reduced income for the company.
Good point RainT, it's ok if SAS is run by good management and profitable. But the fact is that it is not. From what I observed it is a downward trend, revenue plunged and cost soared, sounds like mismanagement.
My friend was recruited as one of their MLM scheme selling their digital products. He left at the end due to the bad experience he had. A few reasons he gave:
1. Incompetent Product. The digital product by sasbadi is merely a digitalization of its school books, it is just a book but in digital format. Other products in the market offer lively interaction with great graphics and customised marking. It was a hype with SAS product initially, but true as he told me, now everything is crumbling. Product is king, a good product will yield good revenue.
Other better products in the market are eg: Fullamark, khanacademy, ilearning.
2. Weak training. He was told to go to fight a war but with minimal training and resources. No info on the market trend. Was quite a humiliating experience when his prospects showed him other better products in the market.
3. Low and late commission. Commissions promised was not received in due time. Despite repeated reminders and 'begging; 'wages were delayed. Dont ever say yes to them.
4. Poor management. Infighting between own people. No clear line between sales territory. at the end, sales lead and sales rep overlapped, resulted in price war.
This company heavily depend on Government projects, schools have recently cancelled exercise books and it might lead this company revenue deep further! i reckoned.
One question you must ask yourself is, what is the company doing with your money?
Is the company doing things to spike the share price or is it really a growing company.
Is has announced that it will acquire one company a year. But the acquisition of own company is the biggest joke ever. You take our money to buy your companies belonging to your immediate family members. This is not acquisition. This is putting money into your own pocket.
And worst still, you made SAS lose company due to this acquisition.
SAS management, please focus your time to RUN THE BUSINESS WELL, but not on how to up the share price by news and announcements.
I agree with @Thepainfultruth, this company is not trustworthy nor transparent in their management.
I looked at the standard 1 and form 1 new textbook list. These are new textbook starting 2017.
I don't see anything from SAS in year 1. For Form 1, 0 subject also. That means bad news for SAS.
Before listing they have quite many textbooks, but now...no government project for SAS means sales will drop to rock bottom. i think the revenue will bye bye further..
Thepainfultruth, You didnt do your proper research. Actually sasbadi do not produce text book for KPM. That the job of Dewan Bahasa. Sasbadi only secure a few text book contract from gov. The rest of it revenue come from open market through it buku tambahan n exercise book.
Sasbadi hs produced all range of books from Standard 1 to form six. Including new curriculum of KSSM for form 1 n form 4 in 2017 this year.
KPM has introduced 21st learning concept through it Dasar PPPM toward digital education. Sasbadi now also transforming it contents toward digital content inline with dasar KPM. Sasbadi now distribute its digital content/product through Mindtech Education one of SAS new subsidiary. The business is growing big now n going to give a big impact to the group. Time to buy now...
Yusof63, do you work for SAS? Looks like what you have said is not supported by data but driven by pure emotions.
Textbook is a big and vital part for SAS. If it were not so, will SAS be so eager to make announcement for EACH and EVERY successful tender that it gets?
What you say doesn't change the fact that SAS failed to secure the tenders it wished. Of the near to 100 textbook tenders in 2017, how many did SAS managed to secure?
You said time to buy? I say it is highly likely that you work for SAS.
Finally sell of Sas and realised the loss 25% : Among the lesson learnt are :
1. Failed to follow cut off rules set by myself again. Lost of over 20% is already hard to recoup in short term
2. If company profit drop due to operating reason and not one off item for continuous 2 qtr , it is indication that the company prospect is deteriorating. Sas is this in this case, profit drop due to operating not one off item
3. Balance sheet wise,from net cash , now become net debt. Also the inventory and debtors amount are growing by quarter. This indicate something wrong with Sas management , cash is tie up in inventory and debtors.
4. Bad benchmark ratio , PE high due to recent loss , ROE low , and low dividend yield
5. News is not good always . Such as promoting Sas acqusition etc . But acq is bad company and for related parties. For me , related parties is OK, as long it is good company . But in Sas case it is not .
6. Big fund buying is not necessarily a good thing. We small shareholders will not know what is the behind motive EPF is buying even profit dropping. Maybe EPF want to include a education company in their portfolio or etc. Big fund can hold very long and Sas loss in drop share price only small thing to them . Don't follow blindy when big funds and directors buying / selling . Need study the reason behind.
SasbadI prospect, profit , balance sheet , ratio all is on the bad side !
Lesson learnt and move on to better company !
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