ARB Bhd upbeat about its FY2021 prospects, driven by its cloud-based solutions
KUALA LUMPUR, MALAYSIA – Media OutReach – 23 February 2021 – For three years, ARB Berhad (ARB) has staged a successful turnaround and consistently registered substantial net profit growth.
In the fourth quarter of the financial year 2020, the Group achieved a massive leap of 55% in the bottom line.
The Group’s success in breaking away from its decade-long losses lies in strategic diversification into the field of enterprise resource planning (ERP) and Internet of Things (IoT) solutions.
To date, ARB is amongst the lowest in terms of valuations when compared to its peers in the technology sector.
The Group had also managed to deliver meaningful growth to its shareholders despite the pandemic.
ARB is in a net cash position, with cash equivalents worth RM24.5 million against zero borrowings as of Dec 31, 2020.
FORWARD PLANS
ARB’s upward growth momentum is poised to continue, underpinned by the immense potential in digitalisation and Industry 4.0.
After posting a record-high net profit in FY20, the Group is confident of achieving a robust performance in FY21.
Executive Director DS Larry Liew Kok Leong says the Group aims to expand its geographical presence.
It also wants to access various new industry sectors by taking advantage of cross-border business opportunities in 2021.
“We intend to collaborate with local partners to extend our footprint in our information technology segment in other countries through the acquisition of business and technologies,” he says.
A key growth strategy for 2021 would be ARB’s move in providing more cloud-based product offerings. This would be achieved through the execution of partner-ecosystem in growing industries.
At the domestic front, Liew says ARB will work closely with government-linked companies, multinational corporations and public listed companies.
“Our cloud solutions have proved to improve management efficiency and accelerate a business’ digitalisation initiatives. At the same time, the solutions would also help to achieve cost-effectiveness,” says Liew.
The Group also intends to expand into new horizontal markets. As such, it will provide cloud-based solutions to facilitate the new norm of business needs.
“As part of the growth strategy driven both organically and through strategic acquisitions, we are delivering innovative solutions in new categories.
“This includes Big Data analysis, e-commerce solutions, IoT platform for 5G and data cybersecurity, and expect to continue to grow these businesses in the future.”
IoT Platforms
He says the Group will accelerate IoT platform-based smart home solutions rollout. They have been gaining traction, especially among households in the urban area.
ARB’s IoT platform would be able to integrate a wide range of electrical appliances.
This will allow multi-connection and readiness of artificial intelligence learning features for the ease of use of home occupants.
ARB’s growth prospects are intact as it is well-positioned in two promising operating segments: ERP and IoT.
ERP and IoT segments will drive alignment, focus and growth while sharpening the partners’ focus.
He says the IoT solutions business is returning to growth by serving more enterprises. “This further builds on our annualised recurring revenue.”