Sunday 25 July 2021

Another Serba Dinamik? Look Deeper into ARB Berhad

Uncover ARB Berhad (7181)

Did some thorough research on ARB Berhad and I finally understood how the company works and the company's ambiguous financial statements.

ARB Berhad is currently selling at very low valuation, hence many investors are trying to figure out what are the reasons for such discount to exist. There certainly are lacked of information regarding the operations of this company, and the management are not very public about the business operations.
So, I tried my best to understand the company from their annual reports and whatever resources I can find online. Most investors have pointed out 2 reasons for the discount in valuation:
1. Dilutive effect of ICPS issuance
2. High receivables    
These 2 reasons are true, but not entirely correct for the discount. Here is my view.