About Krono, from what I understand from their management during AGM 2018,2019,
their existing business EDM is like doing backup for big enterprise for
their data like emails, images, videos, powerpoint slides, those are
non-transaction data. A lot of analysis or even Kronology boss say they
going to do big data etc. As what I understand in my field, those
non-transaction data no point to implement "big data" 1, big data usage
is to use tons of transaction data like GRAB, they know which area
always got user call their car because they collect transaction data
like:-
- User detail, name, emails, etc
- Location of calling grab
- what kind of grab car they looking for, premium/normal grab
- which area they heading to
- payment method
- did this user use grab pay as well
- which kind of shop this user used to do payment
This kind of data is useful for BIG DATA. So far I know Kronology do
not handle this kind of data, even got they also have no rights to
access those data due to privacy, Eg if their customer is Maybank CIMB, u
think those banking data will let them have right to access? So I think
the bosses talk de thing got a bit gimmick inside. Except for the
services they develop is a service base on every customer, like for
Maybank, they build customize features for them to study their data? But
personally do not think got what value to study in those media files,
words, powerpoint slides, emails and so on.
For Sandz Solution, 2019 AGM I did ask them what Sandz will benefit
them, as what I know KRONO got 2 main sectors. EDM Infrastructure
Technology and EDM Managed Services. Actually now the largest profit and
revenue still fall under Infrastructure part, which is margin quite low
1. Basically is like 1 company need backup service, they send ppl over
and take a requirement, then setup either cloud backup/local backup at
their company then collect payment base on what service provided.
For EDM Managed Services, its kind of like well build cloud service,
you can imagine like google drive, you can throw files up to your google
drive. Krono Managed Services is about Kronology having their own cloud
services for its customers to back up their resources and data, if not
mistaken still backup the same kind of data like infrastructure
technology. Managed Services sector margin much higher but current still
very low % in Kronology revenue. According to management, why they want
M&A Sandz is because they doing similar things like Kronology, they
got Infrastructure & Managed Services. I think the last chance for
Kronology to grow is synergy with Sandz solution and grow their business
internally(organic grow)
To make you easier to understand whats the main diff with Infra Technology and Managed Service
Infra Technology is like a custom made solution to the customer
Managed Service is already a solution there, you just need to configure some settings then the user can start using.
Conclusion of my thought is:-
Infrastructure Technology need to win with volume(吃力不討好的業務）, Managed
Service is the key to grow for Kronology. So far Kronology keeps on
M&A and pump up revenue, but I dint really see the earning got any
obvious hike, so I believe they either didn't really integrate
completely all those Quantum India/HK they bought or those company
earning already hitting their ceiling. I believe Kronology now playing
M&A to show revenue/profit grow and not really have organic growth
yet(at least until now I have no chance to identify their internal grow
without depends on M&A). So after Sandz merges completely, you will
see a final wave of growth, if after 1 year Kronology result stagnant,
that means Kronology is playing M&A grow story. They can't
internally grow. I believe a company needs to have strong internal grow
to prove their business/management got the ability to create value for
their company.
1 very important to take note is after Sandz M&A completed on last
year(2019) April and start providing new profit to Kronology, we need to
see their revenue got any organic grow after 2020 April, if not,
Kronology is just a company that riding on AI/Big Data theme. But the
fact is, as I know, only Kronology have a bit related to big data in
Malaysia stocks.
lucas
Casually share, forgive my bad English, and just my 2 cents, might be wrong, buy with own risk =) cheers
Regards,
boon1515 盧卡斯
https://klse.i3investor.com/blogs/lucasboon1515/2020-01-22-story-h1482896863-Krono_0176_Kronology_Asia_A_stock_related_to_Big_Data.jsp
