ARB IOT secures deal to manage 2,000-acre palm oil plantation

KUALA LUMPUR - ARB IOT Group Limited (NASDAQ: ARBB), a provider of integrated Internet of Things (IoT) solutions, has announced a new agreement through its subsidiary ARB Agro Technology Sdn Bhd to manage an additional 2,000 acres of palm oil plantation. This move is expected to boost the company’s annual recurring revenue by approximately USD 13 million. The announcement comes as ARBB’s stock trades at $0.82, having surged over 160% in the past six months. According to InvestingPro analysis, the company currently appears undervalued, trading at just 0.32 times book value.

The expansion is facilitated by a partnership with Whizzl, which acts as the exclusive wholesaler, sole distributor, and system integrator for ARB IOT’s Smart IOT Palm Farming System in the Malaysian regions of Sabah and Sarawak. The agreement underscores the increasing demand for the company’s innovative farming system and signifies a vote of confidence from its distribution partner. Analysts tracked by InvestingPro project significant revenue growth of 226% for the company in the current fiscal year.

Dato’ Sri Liew Kok Leong, CEO of ARB IOT, expressed excitement over securing the order, viewing it as a reflection of the wholesaler partners’ trust in the company’s products. He emphasized the importance of this development in scaling the business and meeting the evolving demands of the market.

ARB IOT’s commitment to innovation and customer satisfaction is a cornerstone of its growth strategy, as it continues to solidify its market position. The company’s comprehensive IoT solutions range from system design to deployment, including various system integration and support services. With an overall financial health score rated as "GOOD" by InvestingPro, which offers 12 additional investment insights for the company, ARB IOT appears well-positioned for future growth.

The information in this article is based on a press release statement from ARB IOT Group Limited. While the press release contains forward-looking statements, potential investors should be aware that actual results may vary due to a number of factors. The company’s filings with the U.S. Securities and Exchange Commission, which provide more detailed information, can be accessed for further understanding of the risks involved.

In other recent news, ARB IOT Group Limited has secured a $45 million agreement to supply 500 units of its ARB-222 AI servers to Gajah Kapitalan Sdn Bhd, marking a significant expansion in the data center industry. This deal underscores the growing demand for AI server solutions and highlights ARB IOT’s commitment to delivering efficient technology. In a related development, the company announced a partnership with a Universiti Kebangsaan Malaysia startup and Gajah Kapitalan Sdn Bhd to establish an AI data center experimental lab at the Institute of Visual Informatics. This facility aims to advance AI research and development and aligns with the Malaysian government’s AI initiatives.

Additionally, ARB IOT has expanded its AI hardware distribution through a strategic partnership with Whizzl Sdn Bhd in Sabah and Sarawak, Malaysia. This collaboration grants Whizzl exclusive rights to distribute ARB’s AI workstations and servers, furthering the company’s reach in the region. The company also announced a deal through its subsidiary, ARB Agro Technology Sdn Bhd, to manage 3,000 acres of palm oil plantations in Sabah using its AI Smart IoT Palm Farming System. This technology aims to boost efficiency and crop yields, contributing to Malaysia’s significant palm oil industry.

ARB IOT’s CEO, Dato’ Sri Liew Kok Leong, expressed optimism about these partnerships, emphasizing their potential to enhance market penetration and drive growth. These developments reflect ARB IOT’s strategic efforts to capitalize on the increasing demand for AI and IoT solutions in Malaysia.

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