News Article L Hotstock: Investors Chase IFCA Shares On Rising Prospects

Fri, 25 July 2014

KUALA LUMPUR (The Edge Jul 21): IFCA MSC Bhd shares and warrants were among the most active, emerging among the top gainers and going against the benchmark index FBM KLCI’s red territory trajectory.

At the close today, the sofware providers shares jumped 3.5 sen or 19.44% to close at four-year of 21.5 sen on a trade volume of 53.74 million. It was trading in the range of 18 sen to 22 sen and was the sevent most active counter on the bourse.

At the same time, IFCA’s warrants traded 4.5 sen or 40.91% higher at 16 sen on a trade volume of 63.37 million. The on-for-one warrants – which comes with a strike price of 10 sen and maturity date of Feb 12, 2016 – surged by as much as six sen or 52.17% to 17.5 sen.

When contacted, IFCA’s Chief Operating Officer Leong Nyu Kuan told theedgemalaysia.com that the buying interest could be investors seeing propspect in the company which expected to benefit from the implemenation of goods and services tax for business software upgrades.

He noted that there had been nothing new or out of the ordinary occuring in the company which had led to a sudden spike in the company’s securities, but believed investors were seeing the value in IFCA.

According to him, the group is winning contracts every month from property develppers in China and Malaysia. “We didn’t just suddenly win a new contract to cause the share price to go up. we’ve been getting new contracts from our Chinese and Malaysia cileints recently. A few every month, actually.” he said.

“It’s like what we told The Edge (Weekly) a few weeks back (in an interview); our company is going to grow because of the implending GST, our blossoming China operations and also-in the longer run – our foray into the education service serctor.” Leong said.

In the interview with The Edge dated Jul 14 – Jul 20, IFCA’s CEO Ken Yong said the company had an order book of RM53 million. This had already exceeded its revenue RM52.01 million for financial year ended Dec 31 2013. Net profit for the year was RM1.73 million, or 0.4 sen per share.

IFCA has been providing business software to property developers for nearly 30 years. The company was in the red between its financial years ended Dec 2007 (FY07) and 2011 (FY11) as it incurred research and development (R&D) expenses and also to grow its China Business.

When we looking at its historical price-earnings valuation, IFCA’s FY13 earnings per share of 0.4 sen would result in counter trading at a price-earnings ratio of 53.73 times as at today’s closing price.