New Risk • Feb 06
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.36m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Market cap is less than US$10m (US$9.36m market cap). Reported Earnings • Nov 02
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: RM40.43 loss per share (further deteriorated from RM31.21 loss in FY 2024). Revenue: RM197.3m (up 239% from FY 2024). Net loss: RM71.4m (loss widened 30% from FY 2024). Revenue exceeded analyst estimates by 118%. Earnings per share (EPS) missed analyst estimates by 39%. Revenue is forecast to grow 49% p.a. on average during the next 2 years, compared to a 13% growth forecast for the IT industry in the US. New Risk • Sep 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (US$8.37m market cap). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). New Risk • Jul 09
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.89m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Market cap is less than US$10m (US$9.89m market cap). Announcement • Apr 04
ARB IOT Group Limited Introduces Ai Drone Technology to Revolutionise Plantation Management ARB IOT Group Limited has introduced its advanced AI-powered plantation mapping system which is seamlessly integrated with drone technology ("Smart AI Drone"), designed to revolutionise plantation management. This innovative technology aims to optimize the plantation mapping processes, enhance efficiency and crop yields, and boost sustainability and productivity in modern agriculture. Equipped with advanced imaging, artificial intelligence, and real-time data analytics, the Smart AI Drone offers a comprehensive solution for farmers and plantation owners. The new service provides capabilities such as precision mapping, crop health monitoring, pest detection, and automated spraying, ensuring optimal growth conditions and reducing resource wastage. By leveraging high-resolution aerial imaging and AI-powered analytics, the service can detect early signs of disease, nutrient deficiencies, and irrigation needs. This targeted approach minimizes environmental impact by reducing the excessive use of pesticides, fertilizers, and water. The Smart AI Drone is tailored for commercial plantations and farms across the country to meet the diverse needs of agricultural businesses, ensuring accessibility and affordability. Announcement • Mar 28
ARB IOT Group Limited Unveils Cutting-Edge Smart Ai Robot to Revolutionize Fertilization in Agriculture ARB IOT Group Limited has unveiled its AI-powered fertilizer system that seamlessly integrates the intelligent multi-functional agricultural robot ("Smart AI Robot"). This innovation is set to revolutionize modern farming by optimising fertilisation processes, enhancing crop yield, and promoting sustainable farming. This advanced AI-powered robot represents a significant leap forward in precision agriculture. The Smart AI Robot features unmanned field operations, modular design, all-terrain capability, centimetre-level positioning, ultra-long endurance, quick-replaceable battery, and precise operation, among others. It can be widely used in various types of plants such as palm oil, durian, lychee, mango, citrus, and orchards to realize unmanned spraying, mowing, fertilizing and delivery. The Company's AI-powered fertilizer system will contribute to the materialization of a new mode of environmentally friendly agriculture production, through a series of new energy unmanned robotics and a big data platform that carry out intelligent and standardized management of various types of agricultural plants with fully automated fertilization, pesticide application, diagnostic scanning of plant and fruit conditions, and soil NPK (nitrogen, phosphorus, potassium) measurement. It is estimated that by 2027, approximately 35% of Malaysia's oil palm land will be overaged. Currently, only approximately 17% of such land has trees in the optimal four to eight-year range where motorised cutters could be effective-- though their performance remains inconsistent. In Sabah and Sarawak, which account for approximately 55% of Malaysia's oil palm areas, the terrain is dominated by steep hills and vast peatlands. The company's AI-powered fertilizer system utilizes cutting-edge machine learning algorithms and real-time soil data analysis to determine the precise amount of fertilizer needed for each section of farmland. The convergence of IoT technology with smart farming system enables real-time monitoring through strategically placed sensors across plantations. These sensors capture data on soil moisture, temperature, humidity and other key environmental factors, providing farmers with instant insights via a central digital hub. This empowers them to make data-driven decisions, respond proactively to environmental changes and optimize farm productivity. With a focus on AI-driven advancements, company aim to drive progress in precision agriculture worldwide. Reported Earnings • Nov 01
Full year 2024 earnings released: RM2.08 loss per share (vs RM1.17 profit in FY 2023) Full year 2024 results: RM2.08 loss per share (down from RM1.17 profit in FY 2023). Revenue: RM58.2m (down 76% from FY 2023). Net loss: RM55.0m (down 313% from profit in FY 2023). New Risk • Aug 02
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.41m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 17% per year over the past 5 years. Market cap is less than US$10m (US$9.41m market cap). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). New Risk • Jul 05
New major risk - Revenue and earnings growth Earnings have declined by 17% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Market cap is less than US$100m (US$14.0m market cap). Reported Earnings • Apr 27
First half 2024 earnings released: RM2.28 loss per share (vs RM0.20 profit in 1H 2023) First half 2024 results: RM2.28 loss per share (down from RM0.20 profit in 1H 2023). Revenue: RM31.6m (down 75% from 1H 2023). Net loss: RM50.2m (down RM53.9m from profit in 1H 2023). Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 9.3% growth forecast for the IT industry in the US. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to US$1.29, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the IT industry in the US. Total loss to shareholders of 69% over the past year. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$1.23, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the IT industry in the US. Total loss to shareholders of 69% over the past year. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$1.29, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the IT industry in the US. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to US$1.53, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the IT industry in the US. Buy Or Sell Opportunity • Feb 20
Now 25% undervalued Over the last 90 days, the stock has risen 81% to US$2.06. The fair value is estimated to be US$2.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to decline by 16% in 2 years. Earnings are forecast to decline by 51% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to US$1.20, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the IT industry in the US. Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$1.30, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 22x in the IT industry in the US. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 216% After last week's 216% share price gain to US$2.59, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 22x in the IT industry in the US. Board Change • Nov 24
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Director Noor Binti Ali was the last director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 19
ARB IOT Group Limited Announces Board Changes ARB IOT Group Limited announced On November 16, 2023, Mr. Khor Ben Jin resigned from his positions as an independent director and member of each committee of the Board of Directors of ARB IOT GROUP LIMITED (the “Company”), effectively immediately. Mr. Khor’s resignation was due to personal reasons and not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. On the same date, the Board of Directors of the Company appointed Ms. Noor Amalina Binti Ali (“Ms. Amalina”) as a director, member of each of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee and the Chair of the Compensation Committee of the Board of Directors of the Company. Ms. Amalina graduated from the professional accounting papers with Association of Chartered Certified Accountants (ACCA) in 2021 and has been registered chartered accountant with Malaysian Institute of Accountants (MIA) from 2021 till present. Ms. Amalina has more than ten (10) years of experience in finance, accounting and auditing, advising clients in various industries. She started her career with JF & S Consultancy as an auditor in 2011. From 2012 to 2017, Ms. Amalina served as tax manager at Messrs Zailan & Associates to practice corporate taxation and served a wide range of clients in diverse industries. From 2017 to 2019, she worked as an accounts manager at PKF Malaysia and also further exposed herself in both accounting and taxation practices in this professional firm until May 2020. In 2022, Ms. Amalina founded her own professional firm, Amalina Ali & Co, which mainly provides accounting, payroll, taxation and company secretarial services. In August 2023, Ms. Amalina joined the board of Annum Berhad, a Malaysian public company in the construction sector, as an independent director. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to US$1.10, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 21x in the IT industry in the US. New Risk • Nov 01
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 41% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 41% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (9.4% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Market cap is less than US$100m (US$29.2m market cap). Reported Earnings • Oct 30
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: RM1.17 (down from RM7.34 in FY 2022). Revenue: RM242.1m (down 45% from FY 2022). Net income: RM25.8m (down 65% from FY 2022). Profit margin: 11% (down from 17% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.6%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 9.3% growth forecast for the IT industry in the US. Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$1.31, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 20x in the IT industry in the US. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$1.60, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 20x in the IT industry in the US. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$1.82, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the IT industry in the US. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to US$3.26, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 25x in the IT industry in the US. Reported Earnings • Jun 18
First half 2023 earnings released First half 2023 results: EPS: US$0.045. Revenue: US$28.0m (down 32% from 1H 2022). Net income: US$831.7k (down 86% from 1H 2022). Profit margin: 3.0% (down from 15% in 1H 2022). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$3.22, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 24x in the IT industry in the US. Valuation Update With 7 Day Price Move • May 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$3.90, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 21x in the IT industry in the US.