Is it a rewarding time for RGB 0037 RGB INTERNATIONAL BHD as gaming scene accelerates?
Most investors look at gaming counters such as Genting Bhd and Genting Malaysia Bhd, which are main beneficiaries of the economic recovery.
More so when China decided to reopen its borders fully.
Which other counters will also stand to fare better with improving gaming sector?
RGB International Bhd is one of them.
It is a casino machine supplier that has been in the gaming industry for over 30 years.
Now that people can cross borders unrestricted, this helps to boost the gaming sector and with traffic, casino operators will want to entice gamblers with exciting and newer gaming machines.
Recognising the exciting growth prospects for RGB, investors have indeed shown much interest in the counter.
RGB has gone from a low of 10 sen to surge to 25 sen before closing at 22 sen on April 20.
The company returned to the black with a net profit of RM4.6 million for the financial year ended Dec 31, 2022 from a net loss of RM10.3 million in the previous year.
Revenue was marginally higher at RM272.5 million versus RM214.9 million.
In addition, the company has a strong balance sheet with net cash of RM76.2 million.
As for free cash flow, it may generate RM80 million -100 million per year from 2023 onwards
A reasonable market price is at least 40 sen or RM618 million market capitalisation compared to a share price of 22 sen and market cap of RM340 million currently.
With the free cash flow, this will bode well for RGB looking to expand its technical support and management (TSM) segment.
There is also much cheers when the company declared a 30% dividend payout for FY23 after not paying dividend in the last 3 FYs.
The 30% payout will translate into a potential dividend yield of 2.6% and 2.9% in FY23 and FY24 respectively.
Rakuten has forecast its FY23 and FY24 net earnings to grow at 898.8% and 8.90% respectively, giving it a BUY recommendation.
The research house has set a target price of 29 sen for RGB premised on PER of 10.4x (5 years average PE) on FY23EPS of 3 sen.
Essentially, with about 37 years operations in the Asean region, RGB enjoys a strong market share, supplying to licensed casino operators in 9 countries.
#RGB
https://xifu.my/OpinionsComment.aspx?BID=B02210537PBAEABC
Singapore Investment
-
-
Finance Investment Movement 611 hour ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Being Simple2 days ago
-
-
-
-
-
-
-
-
-
-
-
随心笔:错1 week ago
-
-
-
-
-
-
Portfolio Update1 week ago
-
A Sign Of Market High?1 week ago
-
-
-
-
-
-
-
Cory Diary : Reits Experience1 week ago
-
-
-
-
Got money, how to invest?1 week ago
-
-
-
-
Portfolio Summary for August 20252 weeks ago
-
August 2025 Updates2 weeks ago
-
-
Aug 2025 Portfolio2 weeks ago
-
-
Portfolio (Aug 31, 2025)2 weeks ago
-
Portfolio (Aug 31, 2025)2 weeks ago
-
-
-
There is No TOMORROW2 weeks ago
-
-
LongBridge2 weeks ago
-
-
-
Why SGD ETFs Deserve a Second Look3 weeks ago
-
Decoupling3 weeks ago
-
-
-
-
-
-
-
Why Buy Always Drop? (Vice versa)4 weeks ago
-
Been a while!5 weeks ago
-
-
-
Endowus Promotion TnC1 month ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Clarity3 months ago
-
Selling HRnet and Fiverr4 months ago
-
-
FAQ on Quantitative Investing Part 25 months ago
-
-
-
Crossing the 300k Mark [in a volatile period]5 months ago
-
-
-
-
ETF vs Mutual Fund: Which is Better?7 months ago
-
-
-
-
Arigato Everyone! A Decade of Blogging!8 months ago
-
Top 10 Highlights of 20248 months ago
-
-
Union Square Residences10 months ago
-
-
-
STI ETF11 months ago
-
-
-
Unibet Casino Bonus Codes 20241 year ago
-
-
-
-
-
Monthly IBKR Update – June 20241 year ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Monthly Summary of November 20231 year ago
-
Migration of website1 year ago
-
-
-
-
-
-
Hello SP Group, I'm Back!2 years ago
-
-
-
A New Light2 years ago
-
-
-
-
-
2022 Thoughts, Hello 2023!2 years ago
-
Series of Defaults for Maple Finance2 years ago
-
Takeaways from “Sea Change”2 years ago
-
Greed is Coming Back2 years ago
-
-
-
-
-
-
-
-
What is Overemployment3 years ago
-
Terra Hill Condo (former Flynn Park)3 years ago
-
Alibaba VS Tencent: The Battle Royale3 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-
Home
RGB
xifu
Is it a rewarding time for RGB 0037 RGB INTERNATIONAL BHD as gaming scene accelerates?