ARB EXPECTS TO BAG 50PC OF TENDER BOOK
Firm in talks with potential clients for enterprise resource planning, IoT solutions
ARB Bhd expects to secure 50 per cent of its RM500 million tender book by the first half of next year.
Its chief executive officer of investment and technology, Datuk Larry Liew Kok Leong, said the company was in talks with several potential clients for its enterprise resource planning (ERP) and Internet of Things (IoT) solutions.
“We are eyeing markets in Sabah and Sarawak as well.”
ERP is a business process management software that allows organisations to use integrated applications to manage their business and automate functions.
Liew said ARB was ahead of other technology companies in providing ERP and IoT solutions to the Malaysian and regional markets.
“Information technology (IT) business will provide a strong recurring income base for ARB, given that we have more than RM100 million of yearly renewal projects on hand.
“Next year, we are expecting the growth to come from our IoT, intelligent lifestyle and renewable energy segments.
“For our IoT segment, we have three projects with a combined value of more than RM150 million which will be recognised in the next three years. We have also put in place some big plans in the renewable energy segment,” he told the New Straits Times.
He said the company believed that talent was the most critical component in IT business.
“Our main cost is in manpower. We have allocated more than 30 per cent of our revenue for talent development.”
For the third quarter ended September 30, ARB posted a net profit of RM8.3 million compared with RM186,000 in the same period last year.
This was driven by a stronger top line of its IT segment, which accounted for 99.7 per cent of its total revenue.
For the nine-month period, revenue stood at RM57.6 million, almost sixfold from RM8.3 million a year ago.
“The current quarter has really hit the mark, with 43 times increase year-on-year. The strong performance was due to the successful execution of our business strategies and a strong organic growth.
“Our profit in the third quarter was generated from our recurring-income business model.
“With a market capitalisation of less than RM100 million, our trailing price-to-earnings ratio stands at less than four times. I strongly believe ARB is undervalued by the investing community, especially for a high-growth IT company,” added Liew.