Posted by messi88 > 2020-05-30 21:34 | Report Abuse

Poor result can’t expect this from mgmt

Posted by joyvest > 2020-05-31 01:08 | Report Abuse

Time to let it go....

Posted by CoolJay > 2020-05-31 11:09 | Report Abuse

A value investor will hold on to this company long run.

Posted by OngKawKaw > 2020-05-31 23:34 | Report Abuse

Bright future. Long term investor will be awarded. Cheers

Posted by augusaugustin1 > 2020-06-01 10:51 | Report Abuse

Let me share with you some insider stories regarding to Revenue Group of Companies.

Obviously based on current market situation, their core business terminal rental and merchant fee income are affecting their bottom line. The 3-owners have to look for other source of income to sustain their share price and therefore keep on buying new profit (using shareholders fund to buy up new companies) instead of building and taking care of their existing core business.

Previously I'm working in Revenue Harvest and notice that the management team is creating politics among themselves. Especially a few of the senior management staffs are not focusing in building the business instead of watching the REVENUE share price up and down everyday. Worst is, the senior management staffs clock-in in last morning and disappeared after lunch time. Moreover, they will drink and drink every evening by claiming company expenses, if you're one of the shareholder, do you like such management team?

Few months back, this company had used shareholder's fund to make a purchase of 20K++ EDC terminals (cost about RM15Mil++) and now all terminals are stuck cannot move. Obviously this company will go bankrupt very soon and recently CIMB is also selling their shares and see no potential in near future. Better don't get greedy with this counter and the owners are even more greedy. This is my 2-cents of words.

Posted by ViWizard > 2020-06-01 14:55 | Report Abuse

haha chun or not?

Posted by augusaugustin1 > 2020-06-01 15:27 | Report Abuse

You can ask these questions during the AGM and let them to answer these questions

Posted by YapJH > 2020-06-01 16:15 | Report Abuse

From my 2 cents of words…

From the 3Q announcement, their core business is badly affected by the covid-19, especially from their transaction processing (almost drop by half). If exclude their digital payment and logistic business (in 2019 these two businesses are not in) of RM1.84mil, their revenue is about RM13.7mil, compared to RM15.5 in 3Q2019), a drop of RM1.8mil. In fact, if we remove the contribution from the two new businesses (RM1.84mil – RM0.62mil x 76% = RM0.93mil), they are in the red already. So their result in Q3 is saved by the two new businesses.

Their bad result is not entirely surprising, at least to me.

One of their key merchants is Taobao, I remember Taobao sale in 3Q is typically lower because of the CNY where China is on a long, like 10 days holidays. But the Covid-19 has brought China into a lockdown mode since Jan 2020, making the shipment even tougher to reach Malaysia, so the sales from Taobao definitely will be severely affected. Also they have oversea card like Alipay wallet, uniopay, which most likely will be close to zero in the month of February and March because of the lockdown.

Malaysia start to take the Covid-19 seriously in Feb (Revenue had mentioned something in Q2 result where the malls are seeing a drop in shoppers since Feb), so most likely their local transaction is affected from Feb onwards. Revenue doesn’t have a strong presence in the local e-com space, except Lazada (and they only process banking account and not credit card), so their transaction is heavily rely on those physical merchant which used their terminals, so even when TnG and Boost are seeing a lot of usage, most likely Revenue doesn’t get much from it. (I can transfer the money within TnG app, so I don’t see Revenue benefited from it during Covid when businesses were closed during MCO).

Their terminal rental income should be quite intact in 3Q2020 (as MCO only started on the 18 March and they have completed the full 3 months). Based on their 2Q2020 IR presentation, with a revenue of RM5.11mil (assume with a 10% growth of RM5.5mil), that means their sale is drop by half to RM4.4mil. This sounds reasonable as from Feb onwards, there should be lower sale since they may have loss 1 to 1.5 months of time to deploy the terminal.

In my opinion (3-cents word), 4Q2020, rental income should be still quite intact (April and May all dudukrumah, so business still have to pay rental), but June / July once MCO uplifted, then maybe will see there will be provision to be made. Sale of EDC may not be high due to MCO in April / May or potentially June as well. Transaction income should continue to be badly affected as explained above. So 4Q2020 may be worse, if nothing concrete has developed during the MCO.

This is not a buy / sell call. The view express is mine and for sharing / discussion purpose only.

Posted by YapJH > 2020-06-01 16:37 | Report Abuse

Everyone is free to comment on a public forum, but it should be done on a more factual basis. Otherwise, it is like bad mouthing (which I was previously being roundly sounded for “bad-mouthing” GHL for making a comparison).

As explained in my earlier comment/analysis (my 2-cents word), if not because of the new businesses (or in someone interpretation, buying profits), 3Q2020, Revenue would be in the red. A lot of listed company pursue inorganic growth to grow the company, this is part of the corporate world game. GHL took over Paysys with profit guarantee as well, so does that mean they shouldn’t? Of course we have to look into the businesses (profits) they buying whether it benefits the company. Anypay and Buymall acquisition provide them access to the consumer, which Revenue doesn’t have, in a way, this is a downstream acquisition of their value chain (please read their IR material as they have provided information on both companies before).

On the comment that they should focus on taking care / building their existing business. Definitely! But if they had not bought the profit… this quarter will be bad. You can’t have the best of both world when you asking them to grow the existing business but everyone duduk at rumah. So I would love to find out how best they can grow their existing business during this MCO/Covid-19, so that they can make more profit, especially from staff who have worked in the company before.

Using company money to drink is bad (And I hope they do practice social distancing). But some missing information and further clarification is needed, did they just purely go drinking? Drink at night club with pretty girls? Are you one of them that go drinking and witness what is really happening there? Or they having business meeting over drinking? Did they bring in new business? All this missing information is rather vague and it is hard to judge. I can’t deny the fact that a lot of companies get sales / business via drinking / happy hour. This is what we called 关系.

For the record, it is kenanga growth fund that is disposing, and not CIMB. If you understand kenanga growth fund, their investment in the stock market may have been badly affected and they need to close their position through liquidating those stock that have profits. At last check, their shareholding has dropped by 1% (still have 29million shares) and not a drastic disposal / exit. When you see them reached less than 5% then may be it is a sign of alarm and will need to know who is the taker. Short term definitely it is facing a strong headwind, especially in 4Q2020. Mid to long term, depending on what are they doing during this covid/MCO which will affect their 2021 prospect.

I understand that they have a huge inventory, but have you consider whether the supply chain have back to normal? It looks bad if it is not moving, but it may be a bonus if they have the stock when the supply chain is still down. It is a-bit contradictory with the earlier comment that they should focus on existing business, which is in the terminals business, and at the same time saying they will go bankrupt because of having a lot of terminals. Without the terminal, how to grow the existing business? Definitely right now they can’t deploy much but that doesn’t mean in the following quarters they can’t.

Again, there is a lot of missing information, particularly on the business prospect, which not many is privy to it. Perhaps this is the scenario that someone who is not in the inner circle of their senior management and only providing their own story, unless you are the right hand man or part of the senior management, otherwise, I don’t think many people will know what the top level strategy is.

P/s: My colleague don't even tell me where and who they meet, let alone the boss of the company.

Posted by terence775 > 2020-06-01 18:50 | Report Abuse

YapJH, thank you very much for the analysis. Regardless of whether anyone agrees or disagrees, I think we should all appreciate the effort people go through to share their studies and to type it all out.

I hope everyone can do a bit more in depth research into a company that they choose to invest in and so make this forum more informative rather than just blindly throwing buy/sell calls or trolling.

Posted by Swcm98 > 2020-06-01 22:19 | Report Abuse

So can invest or not??

Posted by OngKawKaw > 2020-06-02 00:14 | Report Abuse

You can wait than invest lo. Nowadays everyone want fast food. Healthy or not is based on you

Posted by ViWizard > 2020-06-02 09:31 | Report Abuse

can invest

Posted by YapJH > 2020-06-02 10:09 | Report Abuse

Depending what type of investor you are and what is your investment strategy.

Trader may not enter right now as there are other counters with more volatility. Long term investor and if they see there is still potential in the company, may enter when the price is reasonable to he/she (add/average).

Make sure you study all the information available to make an informed decision.

Posted by terence775 > 2020-06-02 15:54 | Report Abuse

People don't like long answers haha. They just want a simple yes or no. Haha.

Ok, let me just say that 40% of my net worth is in revenue, but my average price is very very low. I have a huge margin of safety, and I can afford to wait out any short term volatility. My profit right now just slightly below 100% gain from this stock. If you ask me, Revenue is a no brainer to buy. If you ask others, they will call me stupid, because glove stocks return 300-400% in the past 2 months only. Revenue 2 years returns to shareholders only about 200%.

The answer "Can buy now?" Is always "it depends on you".

The better question to ask is: How long are you willing to hold? And can you handle seeing your investment in the red while everyone else is showing off their short term gains in stocks like Comfort/TopG/Harta etc?

Posted by terence775 > 2020-06-02 15:59 | Report Abuse

If you are a bit more risk averse, I would always recommend splitting your purchases into a few batches spread over a few weeks or months. For example, if you intend to invest RM 10k into a stock, you might want to split into 4 entries. This is just risk management.

If you're the type that likes to go all-in, then better be sure your heart can handle whatever happens afterwards.

Posted by Ggwpbro > 2020-06-03 16:16 | Report Abuse

Today just paid money in a mamak using TNG. Lets go cashless

Posted by smalltimespeculator > 2020-06-04 22:10 | Report Abuse

what is the machine use ? is it Revenue machine or other company?

i nothing got 3 type. one is orange machine by ipay88, one is the old type with pin pad by GHLsys(paysys). and Revenue machine is white android one.

Posted by wilsonngoh > 2020-06-05 10:05 | Report Abuse

When gotta lao sai?

Posted by cherry88 > 2020-06-05 15:56 | Report Abuse

who say lao sai ?

Posted by joyvest > 2020-06-05 15:56 | Report Abuse

coming ........

Posted by joyvest > 2020-06-05 15:57 | Report Abuse

something good to cashless??

Posted by eternityJ > 2020-06-05 16:04 | Report Abuse

why suddenly pump?

Posted by joyvest > 2020-06-05 16:06 | Report Abuse

there must be something good following the Gov announcement

Posted by joyvest > 2020-06-05 16:07 | Report Abuse

CIMB trust has returned which brings further good news......

Posted by terence775 > 2020-06-05 16:10 | Report Abuse

Digitalization initiatives by the government. But let's be honest, who didn't expect that?

Posted by joyvest > 2020-06-05 16:12 | Report Abuse

yeap , what good does it bring ? can you elaborate ?

Posted by ViWizard > 2020-06-05 16:13 | Report Abuse

one limit up come please! hahaa

Posted by Abbychang1288 > 2020-06-05 16:41 | Report Abuse

Goverment give candy on july.
RM 50 E-WALLET

Posted by joyvest > 2020-06-05 16:51 | Report Abuse

but a lot of queue for sale ...............

Posted by joyvest > 2020-06-05 16:52 | Report Abuse

the prospect is good , should hold

Posted by terence775 > 2020-06-05 17:15 | Report Abuse

Basically, e-wallets and e-commerce platform goes up, revenue also gains because they get payment for each transaction.

Posted by Huat huat 2020 > 2020-06-05 17:27 | Report Abuse

Yes dont sell yr ticket. Bumi issue at 1.2 . They will need to maintain above the price .

Posted by Huat huat 2020 > 2020-06-05 17:28 | Report Abuse

The company is good for hold long term.

Frontkn , MI , in the making...

Posted by Huat huat 2020 > 2020-06-05 22:17 |

Post removed.Why?

Posted by bootroop > 2020-06-05 23:05 | Report Abuse

Sorry, what is Bumi issue?

Posted by Huat huat 2020 > 2020-06-06 07:41 | Report Abuse

On behalf of the Board of Directors of REVENUE, M&A Securities Sdn Bhd is pleased to announce that the Company has fixed the issue price of the Special Issue Shares at RM1.21 per Special Issue Share to be issued pursuant to the Special Issue.

Boot see above

Posted by LiimInvest > 2020-06-06 09:36 | Report Abuse

But April to June 2020 the revenue n profits & next QR not good

Posted by Huat huat 2020 > 2020-06-06 12:48 | Report Abuse

Haha so what ? US market so many bankrupt why day day up... this is difference for those who dont and those who understand how market works...

I like to see more negative comments

Posted by Huat huat 2020 > 2020-06-06 12:49 | Report Abuse

Love to see all naysayers This is how the stock market works ! Always goes against majority of players. Think of it like a bus going uphill . It will be smooth ride when less people is on bus ! When too many then over turn..love to see all negative comments about Revenue.

Posted by jiasengcheong > 2020-06-06 12:52 | Report Abuse

yes

Posted by bigprice > 2020-06-06 13:27 | Report Abuse

Revenue not roller coaster. Slow but steady. Kena sabar . But te end akan untung

Posted by Huat huat 2020 > 2020-06-06 14:02 | Report Abuse

Yes @bigprice agreed. 1.2 b from government to digitalization including cashless payment.

Posted by bootroop > 2020-06-08 11:13 | Report Abuse

I suggest you to collect more by then.

LiimInvest But April to June 2020 the revenue n profits & next QR not good

Posted by Huat huat 2020 > 2020-06-08 16:10 | Report Abuse

Chance to collect more when QR is bad...

When Next QR improved it will shoot to rocket

Posted by ivanpui93 > 2020-06-08 20:29 | Report Abuse

Everyone just force to be part of digitalization government program and I believe revenue will benefited from this ...

Posted by investory321 > 2020-06-09 09:27 | Report Abuse

"On behalf of the Board of Directors of REVENUE, M&A Securities Sdn Bhd is pleased to announce that the Company has fixed the issue price of the Special Issue Shares at RM1.21 per Special Issue Share to be issued pursuant to the Special Issue."

Good news as the issue price is not too low from current mkt, earlier worry the issue price will be much discounted, plus direction from gov to further promote cashless transaction, this counter have more room to grow

Posted by icepumpkin > 2020-06-09 09:38 | Report Abuse

remember the etunai last time revenue hit 1.5. maybe this time will be the same.

Posted by eternityJ > 2020-06-09 11:17 | Report Abuse

fastern your seatbelt

Posted by Wt6669 > 2020-06-09 11:34 | Report Abuse

wow