REVENUE generated from its customer relationship management (CRM) and smart Internet of Things (IoT) segment has enabled Main Market-listed information technology (IT) software and platform provider ARB Bhd (formerly Aturmaju Resources Bhd) to sustain growth momentum in its 2Q FY6/2023 ended Dec 31, 2022.
For the said period, ARB’s profit after tax (PAT) jumped by 22% to RM4.09 mil from RM3.35 mil in the previous quarter. Similarly, the group’s revenue was up by 29.2% to RM87.64 mi in 2Q FY6/2023 from RM67.84 mil in 1Q FY6/2023.
The quarter-on-quarter (qoq) improvement reflects ARB’s ability to manage its revenue growth while effectively controlled its expenses. The improvement was mainly due to higher revenue and better cost-optimisation measures that ARB has introduced over the past two years.
“The group’s stable performance is attributed to our ability to maintain our margin and grow our sales through our CRM and Smart IoT segments,” commented ARB’s executive director Datuk Seri Larry Liew Kok Leong.
“We expect the earnings of ARB to continue amid the shift towards digitalisation and automation in Malaysia and in the region.”
In line with the strong earnings momentum, ARB managed to record a PAT of RM7.44 mil with a revenue of RM155.48 mil during its 1H FY6/2023.
Aside from the strong earnings, the group also maintained a positive operating cash flow of around RM69.2 mil during the1H FY6/2023 period. Following its aggressive investment activities during the six-month period, ARB’s cash and cash equivalent stood at around RM56.2 mil without any borrowings.
With the listing of its IoT division on the NASDAQ Stock Exchange, Liew believes this will put ARB on an accelerated path to grow and tap into the available opportunities in the region.
“We believe completion of the proposed spin-off of our subsidiaries on the NASDAQ Stock Exchange will enable our group to achieve greater market penetration and add value for our shareholders,” he envisages.
“Aside from that, the listing on NASDAQ also provides our IoT business with direct access to a new fund-raising platform which would increase the financial flexibility of the group’s IoT business to pursue its expansion and growth opportunities.”
Eventually, Liew added that the listing on NASDAQ which is a globally recognised stock exchange would also help ARB’s IoT business to gain recognition and enhance its corporate reputation.
At the close of today’s mid-day trading break, ARB was unchanged at 11 sen with 258,900 shares traded, thus valuing the company at RM134 mil. – March 2, 2023
