ARBB

ARBB

Postby winston » Thu May 02, 2019 8:47 am

not vested

Trading Buy: ARBB - 7181
(Last price: RM0.530, Potential upside +66.0%)

Company Profile
ARBB is involved in several business segments, which include timber related, Enterprise Resource Planning (ERP) and IoT equipment and may expand into re-energy solutions this year.

Trading Catalyst

After diversifying into IT solutions business in 3Q18, specialised in providing ERP solution, it has seen a huge contribution of RM8m or 52% towards FY18’s revenue and FY18’s EPS stood at 6 sen (vs. 6 sen loss in FY17).

It has recorded RM5.1m in 1Q19 on the back of higher revenue at RM12.4m contributed by the Enterprise Resource Planning (ERP) software system and the IT segment is expected to continue in contributing the major portion of the sales and profits to the Group.

With contracts being secured by ARBB worth RM6.9m in 3Q18 and RM20m in Jan-19, we believe it may contribute to decent topline and bottomline growth. In addition, ARB has entered into a MoU with Perkasa Selalu Sdn Bhd to provide IoT solutions; this will open up another business venture, which is likely to contribute positively towards ARB.

They are exploring into re-energy solutions this year and we could see that as an expansion towards their revenue and earnings moving forward.

Technical View
Resistance: RM0.610 / RM0.650 / RM0.880
Support: RM0.460 / RM0.440
Cut loss: RM0.430

Key Financial Stats
4Q18 Net profit: RM5.0m, 1Q19 Net profit: RM5.1m
Turnaround in FY18, may register record profit in FY19

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: ARBB

Postby winston » Mon Jun 10, 2019 8:56 am

not vested

Trading Buy: ARBB - 7181
(Last price: RM0.455, Potential upside +93.4%)

Company Profile
ARB is involved in timber business, ERP solutions, IoT solutions and expanding into re-energy solutions.


Trading Catalyst

Following the profitable FY18 and 2 consecutive quarters of strong earnings for ARBB, we believe that the diversification from timber business into IT related services (ERP solutions) have been gaining traction and is likely to bring record earnings for ARBB.

With the expansion in the IoT segment, they have been awarded with two contracts. On 29-May, ARBB was awarded with RM18m contract to undertake whole IoT system, engineering, procurement, commissioning and management (SEPCM) of for 1 year. Meanwhile, another contract worth RM60.4m has been awarded to ARBB to be completed within the next 18 months. We view this as a positive catalyst to the already-turnaround company in FY19.

The acquisition of 51% in C&M Renewable Technology Sdn Bhdwill open up the re-energy solution segment and ARBB’s role is to provide the technology equipment and assets and perform the installation, operation and management of the Solar PV System.

Technical View
Resistance: RM0.510 / RM0.605 / RM0.880
Support: RM0.430 / RM0.420
Cut loss: RM0.400

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: ARBB

Postby winston » Wed Oct 30, 2019 9:10 am

not vested

Trading Buy: ARBB - 7181

*Transformation is bearing fruits to generate a 117% surge in FY18-20 earnings CAGR *
(Last price: RM0.360, Potential upside +27.8%)

Company Profile
ARBB is involved in timber business, ERP solutions, IoT solutions and expanding into re-energy solutions.

Trading Catalyst

We like ARBB, premised on its emphasis on recurring ERP and solar projects, and its recent venture into IoT business after transforming from a multi-year loss-making timber related business.

If executed well, ARBB is expected to yield an impressive growth of 140% earnings CAGR from FY18-20, riding on the YTD jobs secured ~RM250m YTD and numerous MOU and MOA business contracts estimated at ~RM1.4bn in June 2019 with local and overseas clients.

Valuations are attractive at 0.8x P/B (vs 1Y avg 0.9x) and 19.2x FY20 FD P/E (vs 1Y avg 3.5x), supported by 5sen net cash/share and 0.11x PEG.

Technical View
Resistance: RM0.380 / RM0.400 / RM0.460
Support: RM0.335 / RM0.325
Cut loss: RM0.315

Key Financial Stats
P/B: 0.8x (vs 1Y avg 0.9x)
FY20 FD P/E: 19.2x (vs 1Y avg 3.5x)

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to A to D

Who is online

Users browsing this forum: No registered users and 4 guests

cron