not vested
Strong earnings ahead for IFCA MSC, says CIMB Research
KUALA LUMPUR: CIMB Equities Research expects IFCA MSC to see strong earnings growth over the next two years, as it is one of the main beneficiaries of the upcoming Goods and Services Tax (GST) implementation in April 2015.
“What could also positively surprise is its China division. Sales are growing fast and could surpass Malaysia’s in two years’ time,” it said on Thursday.
CIMB Research said assuming IFCA’s 2015 net profit is around RM15mil (2.5 sen EPS fully diluted) and if it pegged the stock at 21 times 2015 P/E (in line with peers MyEG and Cuscapi), the stock could be worth 53 sen.
The potential re-rating catalysts for the stock include higher GST-driven and China sales and potential dividends or bonus issues.
IFCA is the country’s dominant software solutions provider for the property sector, with more than 70% market share. Its software is for property development, property management, clubs and hotels. IFCA currently has more than 1,000 customers (and has distributed more than 50,000 software licences).
“The next two years will be bumper years for the company as domestic property developers upgrade their GST software in Malaysia ahead of the April 1 GST implementation.
At end-June, IFCA’s Malaysia year-to-date sales contract was already RM42.1mil compared to 2013’s RM38.9mil.
“As at end-June this year, we understand that only 10% of its customers have upgraded their software, an indication of the immense amount of business in the pipeline for the company over the next few quarters.
“IFCA is also a big player in China. One of its largest customers, the Wanda Group, is China’s largest commercial property company. 1H14 China sales were already RM21m, surpassing 2013’s RM16mil revenue.
“In two to three years’ time, IFCA’s sales in China could surpass that in Malaysia. There are more than 40,000 property companies in China compared to 1,000 in Malaysia.
“IFCA earnings are already showing signs of a turnaround. 2Q14 net profit was RM3mil, surpassing 2013’s RM1.7mil net profit. We believe IFCA should be able to record RM8mil to RM9mil net profit in 2014.
“Momentum should continue into 2015, with net profit likely to be RM15mil. If the company can deliver the numbers, IFCA could move to the Main Board in 2016. Its balance sheet is also strong, with RM30mil net cash or 6.7 sen net cash per share as at end-June,” it said.
Source: The Star
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IFCA MSC
20 posts
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Re: IFCA MSC
by winston » Sat Aug 30, 2014 8:13 am
IFCA gets noticed BY YVONNE TAN
Software vendor IFCA MSC Bhd’s founder Ken Yong Keang Cheun has never been this busy nor has his stock been this hot.
Yong’s been having meeting after meeting with institutional funds, analysts, investors and the media in recent weeks.
IFCA’s shares, meanwhile, are up a whopping 77% to 49.5 sen from a month ago compared with the benchmark index which is down as investors load up in anticipation of possible better days ahead for the company.
The smallish firm has even caught the attention of savvy investor Brahmal Vasudevan, who had in the past generated a handsome return for his bet on another IT stock, MYEG Services Bhd.
On Tuesday, Brahmal surfaced as a substantial shareholder in IFCA with a 5.55% stake.
Yong, who together with his brother controls over 40% of the company, is optimistic that Brahmal will increase further his stake in the firm.
“I think you will also see some institutional funds on our shareholder list soon,” he says.
Up until now, IFCA, established in the late 1980s has never really been a firm favourite with any investor probably because of a number of reasons.
For some time, the company was bleeding losses on several major write-offs after making some heavy investments and only just returned to the black two years ago, albeit making small profits.
Additionally, the perception of being just another IT firm to jump into the hot IT scene more than a decade ago has seen its share price depressed for most parts of its listed life.
“But what we have now is a stronger IFCA which is a good position for growth, ” Yong says.
It appears IFCA, which makes comprehensive software for property companies does have a couple of fundamental factors going for it at the moment, providing some justification of sorts for the optimism that is surrounding it.
It recently announced that net profit for its latest quarter came in at RM3mil, higher than the RM578,000 for the same period a year earlier.
IFCA has also grown its market share to 70% here in Malaysia and has a growing Chinese business, which currently makes up about 30% of the group’s sales and envisaged to grow further.
Its breakthrough in the Chinese market came about 4 years ago when IFCA managed to strike up a deal with China’s Wanda Group, Asia’s largest commercial real estate developer, Yong says.
“China wasn’t easy for us, we were there for years and years before coming into anything at all.”
Its efforts seem to have paid off with China sales for the first half of this year reaching RM21mil, which is higher than the RM16mil recorded in the whole of the last financial year. “We remain very small in China but hope to grow big, there are over 40,000 property firms in China as opposed to about 1,000 here.”
The impending implementation of the goods and services tax (GST) next April which will require IFCA’s huge local client-base to upgrade their software to meet with new requirements is another major catalyst for growth.
Notably, it counts most of the big boys in the property industry as its clients including SP Setia Bhd, Mah Sing Group Bhd, Berjaya Land Bhd and Sunway City group.
Two analysts who earlier this week released reports on the company have seemingly bought into the prospects of IFCA, believing that it is poised to deliver, at least for the next couple of years.
Maybank Research analyst Wong Wei Sum, whose note to clients came out two days before CIMB Research analyst Nigel Foo’s note, is expecting IFCA’s earnings to leap by over 400% in the current financial year ending Dec 31 (FY14) to RM8.8mil from RM1.7mil in FY 13 and further grow by 50% to RM13.1mil in FY15 on strong contract sales and improving margins.
Meanwhile, Foo is also predicting that IFCA will record RM8mil-RM9mil in FY14 and RM15mil in the following year, boosted by the China and GST factors.
Yong says IFCA has managed to grow its net profit margin to about 17%.
“We hope to increase this as revenue grows and costs are controlled.”
He has other goals, including to grow the company’s market capitalisation to “a few hundred million ringgit” from the current RM222.8mil and get the ACE market company onto the Main Market, as more investors get acquainted with the firm.
With a net cash position of RM30mil and minimal borrowings, Yong says the company is also in a good position to swallow up any of the smaller boys in the industry as well as to reward shareholders.
“But our focus remains to build a solid base from here.
“When we are on the radar, we must make sure we deliver and do not disappoint.”
Yong sold off some 17 million IFCA warrants this week in tandem with the uptrend in the price of the mother share.
He says that he did so to “settle his personal loans and “buy more mother shares.”
IFCA has three research and development centres where its IT software is formulated, two of which are in China and one in Malaysia. It also operates more than 20 sales and service centres locally and in China, with plans to increase the number of these in the near-term as more business flows in.
Source: The Star
Software vendor IFCA MSC Bhd’s founder Ken Yong Keang Cheun has never been this busy nor has his stock been this hot.
Yong’s been having meeting after meeting with institutional funds, analysts, investors and the media in recent weeks.
IFCA’s shares, meanwhile, are up a whopping 77% to 49.5 sen from a month ago compared with the benchmark index which is down as investors load up in anticipation of possible better days ahead for the company.
The smallish firm has even caught the attention of savvy investor Brahmal Vasudevan, who had in the past generated a handsome return for his bet on another IT stock, MYEG Services Bhd.
On Tuesday, Brahmal surfaced as a substantial shareholder in IFCA with a 5.55% stake.
Yong, who together with his brother controls over 40% of the company, is optimistic that Brahmal will increase further his stake in the firm.
“I think you will also see some institutional funds on our shareholder list soon,” he says.
Up until now, IFCA, established in the late 1980s has never really been a firm favourite with any investor probably because of a number of reasons.
For some time, the company was bleeding losses on several major write-offs after making some heavy investments and only just returned to the black two years ago, albeit making small profits.
Additionally, the perception of being just another IT firm to jump into the hot IT scene more than a decade ago has seen its share price depressed for most parts of its listed life.
“But what we have now is a stronger IFCA which is a good position for growth, ” Yong says.
It appears IFCA, which makes comprehensive software for property companies does have a couple of fundamental factors going for it at the moment, providing some justification of sorts for the optimism that is surrounding it.
It recently announced that net profit for its latest quarter came in at RM3mil, higher than the RM578,000 for the same period a year earlier.
IFCA has also grown its market share to 70% here in Malaysia and has a growing Chinese business, which currently makes up about 30% of the group’s sales and envisaged to grow further.
Its breakthrough in the Chinese market came about 4 years ago when IFCA managed to strike up a deal with China’s Wanda Group, Asia’s largest commercial real estate developer, Yong says.
“China wasn’t easy for us, we were there for years and years before coming into anything at all.”
Its efforts seem to have paid off with China sales for the first half of this year reaching RM21mil, which is higher than the RM16mil recorded in the whole of the last financial year. “We remain very small in China but hope to grow big, there are over 40,000 property firms in China as opposed to about 1,000 here.”
The impending implementation of the goods and services tax (GST) next April which will require IFCA’s huge local client-base to upgrade their software to meet with new requirements is another major catalyst for growth.
Notably, it counts most of the big boys in the property industry as its clients including SP Setia Bhd, Mah Sing Group Bhd, Berjaya Land Bhd and Sunway City group.
Two analysts who earlier this week released reports on the company have seemingly bought into the prospects of IFCA, believing that it is poised to deliver, at least for the next couple of years.
Maybank Research analyst Wong Wei Sum, whose note to clients came out two days before CIMB Research analyst Nigel Foo’s note, is expecting IFCA’s earnings to leap by over 400% in the current financial year ending Dec 31 (FY14) to RM8.8mil from RM1.7mil in FY 13 and further grow by 50% to RM13.1mil in FY15 on strong contract sales and improving margins.
Meanwhile, Foo is also predicting that IFCA will record RM8mil-RM9mil in FY14 and RM15mil in the following year, boosted by the China and GST factors.
Yong says IFCA has managed to grow its net profit margin to about 17%.
“We hope to increase this as revenue grows and costs are controlled.”
He has other goals, including to grow the company’s market capitalisation to “a few hundred million ringgit” from the current RM222.8mil and get the ACE market company onto the Main Market, as more investors get acquainted with the firm.
With a net cash position of RM30mil and minimal borrowings, Yong says the company is also in a good position to swallow up any of the smaller boys in the industry as well as to reward shareholders.
“But our focus remains to build a solid base from here.
“When we are on the radar, we must make sure we deliver and do not disappoint.”
Yong sold off some 17 million IFCA warrants this week in tandem with the uptrend in the price of the mother share.
He says that he did so to “settle his personal loans and “buy more mother shares.”
IFCA has three research and development centres where its IT software is formulated, two of which are in China and one in Malaysia. It also operates more than 20 sales and service centres locally and in China, with plans to increase the number of these in the near-term as more business flows in.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Sat Aug 30, 2014 8:18 am
DP Capital buys into IFCA MSC
July 17, 2014
KUALA LUMPUR: British Virgin Islands-registered DP Capital Ltd has emerged as a substantial shareholder in IT-based IFCA MSC Bhd.
A filing with Bursa Malaysia on Wednesday showed DP Capital bought 26.18 million shares on June 26.
The shares accounted for a 5.82% stake in IFCA MSC, which is involved in information technology services and consultancy in the region.
IFCA MSC is an information technology services provider in the region.
Source: The Star
July 17, 2014
KUALA LUMPUR: British Virgin Islands-registered DP Capital Ltd has emerged as a substantial shareholder in IT-based IFCA MSC Bhd.
A filing with Bursa Malaysia on Wednesday showed DP Capital bought 26.18 million shares on June 26.
The shares accounted for a 5.82% stake in IFCA MSC, which is involved in information technology services and consultancy in the region.
IFCA MSC is an information technology services provider in the region.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Sat Aug 30, 2014 8:22 am
not vested
At the cusp of a significant rerating
Aug 25, 2014
A GST play, to benefit from the property industry spanning upgrades for GST.
Massive jump in earnings expected; IFCA is ready to reward shareholders.
We value IFCA at MYR0.42, based on 14.5x FY15 PER. The stock is an under-researched gem.
http://research.maybank-ib.com/pdf/docu ... E_5258.pdf
At the cusp of a significant rerating
Aug 25, 2014
A GST play, to benefit from the property industry spanning upgrades for GST.
Massive jump in earnings expected; IFCA is ready to reward shareholders.
We value IFCA at MYR0.42, based on 14.5x FY15 PER. The stock is an under-researched gem.
http://research.maybank-ib.com/pdf/docu ... E_5258.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 118788
- Joined: Wed May 07, 2008 9:28 am
Re: IFCA MSC
by winston » Wed Oct 08, 2014 9:11 pm
not vested
September 10, 2014
Brahmal explains trade
BY NG BEI SHAN
KUALA LUMPUR: Brahmal Vasudevan, the founder of private equity fund Creador, described his entry into and partial exit from IFCA MSC Bhd as a “short term” trade.
After his sale of 11.25 million shares or 2.5% of IFCA on Sept 2, Brahmal, whose corporate moves are often watched by others, still has a 3% stake in the company.
Following the announcement of Brahmal selling his stake, the share price of IFCA has seen some heavy selling.
Yesterday, IFCA’s share price shed 4 sen or 8.79% to close at 41.5 sen with 61 million shares traded.
Despite him reducing his stake, Brahmal still views IFCA as a good company with many growth drivers and that the disposal was his personal trading strategy.
“It is a pity that I discovered IFCA too late. In fact, I bought into it after reading an analyst report by Maybank IB Research,” he told StarBiz on the sidelines of the Malaysian Private Equity Forum 2014.
Bursa Malaysia filings showed that Brahmal acquired 5.55% of the software company on Aug 26. The research report was issued on Aug 25.
Brahmal explained that he adopted different strategies for the companies that he bought into and that included the holding period of his investment.
Nonetheless, he still thinks that IFCA has the potential to grow 20% to 30% yearly.
He said he generally likes businesses with recurring income. “In IFCA’s case, it gets a percentage of fees from the software products it sells,” he added.
The investment in IFCA is Brahmal’s private investment and not part of Creador’s portfolio of investments.
Generally, Creador adopts a long-term investment strategy and some of its investments include Bonia Group Bhd, GHL Systems Bhd, MNC Sky Vision of Indonesia and Cholamandalam Investment & Finance Company Ltd.
Some of the opportunities that do not fit into Creador’s strategy are sometimes taken up by Brahmal in his personal capacity. In the past, Brahmal has also taken up stakes in his personal capacity in SMRT Holdings Bhd.
IFCA’s share price has surged more than 400% year-to-date and jumped close to 70% in a month.
Maybank IB Research said in the report that it projected a 406% growth in financial year ending Dec 31, [b]2014 (FY14) net profit to RM8.8mil[/b] and a 50% growth in FY15 to RM13.1mil on the back of strong contract flows and improving net margins.
“As of June 2014, IFCA’s balance sheet was clean with a net cash of RM30mil or 6.7 sen per share. Pegging it to 14.5 times price-to-earnings ratio, we derive a fair value of 42 sen for IFCA,” the research house noted.
Source: The Star
September 10, 2014
Brahmal explains trade
BY NG BEI SHAN
KUALA LUMPUR: Brahmal Vasudevan, the founder of private equity fund Creador, described his entry into and partial exit from IFCA MSC Bhd as a “short term” trade.
After his sale of 11.25 million shares or 2.5% of IFCA on Sept 2, Brahmal, whose corporate moves are often watched by others, still has a 3% stake in the company.
Following the announcement of Brahmal selling his stake, the share price of IFCA has seen some heavy selling.
Yesterday, IFCA’s share price shed 4 sen or 8.79% to close at 41.5 sen with 61 million shares traded.
Despite him reducing his stake, Brahmal still views IFCA as a good company with many growth drivers and that the disposal was his personal trading strategy.
“It is a pity that I discovered IFCA too late. In fact, I bought into it after reading an analyst report by Maybank IB Research,” he told StarBiz on the sidelines of the Malaysian Private Equity Forum 2014.
Bursa Malaysia filings showed that Brahmal acquired 5.55% of the software company on Aug 26. The research report was issued on Aug 25.
Brahmal explained that he adopted different strategies for the companies that he bought into and that included the holding period of his investment.
Nonetheless, he still thinks that IFCA has the potential to grow 20% to 30% yearly.
He said he generally likes businesses with recurring income. “In IFCA’s case, it gets a percentage of fees from the software products it sells,” he added.
The investment in IFCA is Brahmal’s private investment and not part of Creador’s portfolio of investments.
Generally, Creador adopts a long-term investment strategy and some of its investments include Bonia Group Bhd, GHL Systems Bhd, MNC Sky Vision of Indonesia and Cholamandalam Investment & Finance Company Ltd.
Some of the opportunities that do not fit into Creador’s strategy are sometimes taken up by Brahmal in his personal capacity. In the past, Brahmal has also taken up stakes in his personal capacity in SMRT Holdings Bhd.
IFCA’s share price has surged more than 400% year-to-date and jumped close to 70% in a month.
Maybank IB Research said in the report that it projected a 406% growth in financial year ending Dec 31, [b]2014 (FY14) net profit to RM8.8mil[/b] and a 50% growth in FY15 to RM13.1mil on the back of strong contract flows and improving net margins.
“As of June 2014, IFCA’s balance sheet was clean with a net cash of RM30mil or 6.7 sen per share. Pegging it to 14.5 times price-to-earnings ratio, we derive a fair value of 42 sen for IFCA,” the research house noted.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Thu Oct 09, 2014 8:22 am
not vested
IFCA seeks to enter Japan’s IT market
BY YVONNE TAN
PETALING JAYA: Software and IT systems firm IFCA MSC Bhd has set its sights on the Japanese market for its overseas expansion and will leverage on its relationship with Japanese real estate giant Mitsui-Fudosan Co Ltd to achieve this.
The company had, two months ago, won a contract, albeit a small one at RM2mil, to implement a mall management IT system for the Mitsui Outlet Park located near the KL International Airport.
“This is our first time working with Mitsui and also our first time working with a Japanese firm,” IFCA chief executive officer Ken Yong said. “Hopefully, we can replicate our China success in Japan,” he told StarBiz.
IFCA’s breakthrough in the Chinese market came only about four years ago, when the company managed to strike a deal with China’s Wanda Group, Asia’s largest commercial real estate developer.
It had been in China for close to six years before that happened.
Since sealing its relationship with Wanda, IFCA has seen its sales in China grow rapidly, with sales for the first half of this year reaching RM21mil, which is higher than the RM16mil recorded in the whole of the last financial year.
Likewise, Yong hopes the same can happen in Japan, where Mitsui is also a big name with close to 70 retail properties under its belt.
Currently, most malls there do not have centralised IT systems, leaving a huge opportunity for IFCA to tap into, according to him.
“As for Mitsui, it also has a footprint in other countries like Taiwan, China and now Malaysia, so there’s plenty for us to leverage on,” added Yong.
The ultimate aim, as ambitious as it sounds, Yong admitted, is to have IFCA eventually link up all Mitsui’s retail properties to a centralised IT system based at its headquarters in Tokyo.
IFCA’s sales right now come mostly from Malaysia, where it has a 70% market share. Its international business is predominantly from China, which makes up about 30% of group sales, and envisaged to grow further.
The company’s shares have come under the radar in recent times, surging a whopping 450% from eight sen at the beginning of the year to 44 sen as at yesterday’s close.
Having only just returned to the black two years ago, the smallish firm has even caught the attention of savvy investor Brahmal Vasudevan, who bought a 5.55% stake in August.
Brahmal, however, has since sold off some of the shares in line with the rising price trend of the stock.
IFCA recently announced that its net profit for its second quarter ended June 30 came in at RM3mil, higher than the RM578,000 achieved for the same period a year earlier.
It is due to announce its third-quarter results on Nov 6.
The Mitsui Outlet Park, a joint venture between Mitsui and Malaysia Airports Holdings Bhd, is expected to open its doors to the public early next year, offering some 140 shopping outlets covering an area of 25,000 sq m.
Source: The Star
IFCA seeks to enter Japan’s IT market
BY YVONNE TAN
PETALING JAYA: Software and IT systems firm IFCA MSC Bhd has set its sights on the Japanese market for its overseas expansion and will leverage on its relationship with Japanese real estate giant Mitsui-Fudosan Co Ltd to achieve this.
The company had, two months ago, won a contract, albeit a small one at RM2mil, to implement a mall management IT system for the Mitsui Outlet Park located near the KL International Airport.
“This is our first time working with Mitsui and also our first time working with a Japanese firm,” IFCA chief executive officer Ken Yong said. “Hopefully, we can replicate our China success in Japan,” he told StarBiz.
IFCA’s breakthrough in the Chinese market came only about four years ago, when the company managed to strike a deal with China’s Wanda Group, Asia’s largest commercial real estate developer.
It had been in China for close to six years before that happened.
Since sealing its relationship with Wanda, IFCA has seen its sales in China grow rapidly, with sales for the first half of this year reaching RM21mil, which is higher than the RM16mil recorded in the whole of the last financial year.
Likewise, Yong hopes the same can happen in Japan, where Mitsui is also a big name with close to 70 retail properties under its belt.
Currently, most malls there do not have centralised IT systems, leaving a huge opportunity for IFCA to tap into, according to him.
“As for Mitsui, it also has a footprint in other countries like Taiwan, China and now Malaysia, so there’s plenty for us to leverage on,” added Yong.
The ultimate aim, as ambitious as it sounds, Yong admitted, is to have IFCA eventually link up all Mitsui’s retail properties to a centralised IT system based at its headquarters in Tokyo.
IFCA’s sales right now come mostly from Malaysia, where it has a 70% market share. Its international business is predominantly from China, which makes up about 30% of group sales, and envisaged to grow further.
The company’s shares have come under the radar in recent times, surging a whopping 450% from eight sen at the beginning of the year to 44 sen as at yesterday’s close.
Having only just returned to the black two years ago, the smallish firm has even caught the attention of savvy investor Brahmal Vasudevan, who bought a 5.55% stake in August.
Brahmal, however, has since sold off some of the shares in line with the rising price trend of the stock.
IFCA recently announced that its net profit for its second quarter ended June 30 came in at RM3mil, higher than the RM578,000 achieved for the same period a year earlier.
It is due to announce its third-quarter results on Nov 6.
The Mitsui Outlet Park, a joint venture between Mitsui and Malaysia Airports Holdings Bhd, is expected to open its doors to the public early next year, offering some 140 shopping outlets covering an area of 25,000 sq m.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Sat Oct 11, 2014 6:55 am
not vested
CIMB Research initiates coverage on IFCA, TP 78 sen
PETALING JAYA: CIMB Research has initiated coverage on IFCA MSC Bhd with a target price of 78 sen based on 21 times 2016 P/E.
The research house said in a note to clients that potential catalysts for the stock included stronger-than-expected GST jobs, potential dividends and a move to the Main Board in 2016.
“We project IFCA’s three-year net profit CAGR (compound annual growth rate) to be 228%. Profit margins should expand quickly as revenue growth from the domestic and China markets is expected to accelerate,” it said.
IFCA is an enterprise software solutions provider mainly for the property development, golf clubs, hotels and construction sector.
The company dominates in the domestic property sector, with around 70% market share. Most of the major domestic property developers, such as Sime Darby, SP Setia, EcoWorld and Mah Sing, are its customers, CIMB wrote.
China and the domestic software migration from Windows-based to web/mobile platforms should keep the company busy after the completion of the GST jobs, it said adding that IFCA was also looking to expand its regional reach.
Source: The Star
CIMB Research initiates coverage on IFCA, TP 78 sen
PETALING JAYA: CIMB Research has initiated coverage on IFCA MSC Bhd with a target price of 78 sen based on 21 times 2016 P/E.
The research house said in a note to clients that potential catalysts for the stock included stronger-than-expected GST jobs, potential dividends and a move to the Main Board in 2016.
“We project IFCA’s three-year net profit CAGR (compound annual growth rate) to be 228%. Profit margins should expand quickly as revenue growth from the domestic and China markets is expected to accelerate,” it said.
IFCA is an enterprise software solutions provider mainly for the property development, golf clubs, hotels and construction sector.
The company dominates in the domestic property sector, with around 70% market share. Most of the major domestic property developers, such as Sime Darby, SP Setia, EcoWorld and Mah Sing, are its customers, CIMB wrote.
China and the domestic software migration from Windows-based to web/mobile platforms should keep the company busy after the completion of the GST jobs, it said adding that IFCA was also looking to expand its regional reach.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 118788
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Re: IFCA MSC
by winston » Thu Nov 06, 2014 9:22 pm
not vested
Record earnings for IFCA MSC
KUALA LUMPUR: CIMB Equities Research is upbeat on the outlook for IFCA MSC after it posted record net profit for the third quarter ended Sept 30, 2014.
“At 178% annualised 9M14 net profit, IFCA’s 3Q results was above our (no consensus) expectations due to higher-than-expected top-line growth,” said the research house on Thursday.
CIMB Research raised its FY14-16 EPS by 36%-100% to reflect stronger top-line growth and target price also rises based on unchanged 21 times 2016 price-to-earnings (P/E) in line with domestic peers.
“The stock remains an Add with potential catalysts such as record 3Q14 net profit and move to Main Board in 2015,” it said.
It said IFCA's higher-than-expected 3Q14 profit was mainly due to its strong top line growth, coming from domestic and the China business.
Year-to-date, only RM8.4mil Goods and Services Tax (GST) jobs were completed while the research house is targeting 80%-90% revenue growth from the China market this year.
“The company only has 100 customers in China and we understand there are 40,000 property companies in that country. High operating leverage business
“IFCA’s software business has a high operating leverage. Most of its operating costs is fixed (labour is 65% of its operating costs) and its top line has reached the sweet spot this year,” said the research house.
CIMB Research said IFCA’s revenue is now more than sufficient to cover its operating costs and as such, most of the revenue incremental growth should follow directly to the bottom line. This is shown by 3Q14’s EBITDA margin which was at 37.4% compared to 18.0% in 2Q14.
“The 3Q revenue was up 40% on-quarter at RM25.7mil. IFCA is a net cash company, RM34.9mil or 7.7 sen net cash/share as at end-September.
“With limited capex spending and R&D at only RM4mil to RM6mil annually, the company’s cash pile will continue to grow in time. In addition, by next year, we more of the warrants would be converted (143.3 million outstanding warrants, exercise price 10 sen and expires in February 2016) and this could raise additional RM14.3mil for the company,” said the research house.
Source: The Star
Record earnings for IFCA MSC
KUALA LUMPUR: CIMB Equities Research is upbeat on the outlook for IFCA MSC after it posted record net profit for the third quarter ended Sept 30, 2014.
“At 178% annualised 9M14 net profit, IFCA’s 3Q results was above our (no consensus) expectations due to higher-than-expected top-line growth,” said the research house on Thursday.
CIMB Research raised its FY14-16 EPS by 36%-100% to reflect stronger top-line growth and target price also rises based on unchanged 21 times 2016 price-to-earnings (P/E) in line with domestic peers.
“The stock remains an Add with potential catalysts such as record 3Q14 net profit and move to Main Board in 2015,” it said.
It said IFCA's higher-than-expected 3Q14 profit was mainly due to its strong top line growth, coming from domestic and the China business.
Year-to-date, only RM8.4mil Goods and Services Tax (GST) jobs were completed while the research house is targeting 80%-90% revenue growth from the China market this year.
“The company only has 100 customers in China and we understand there are 40,000 property companies in that country. High operating leverage business
“IFCA’s software business has a high operating leverage. Most of its operating costs is fixed (labour is 65% of its operating costs) and its top line has reached the sweet spot this year,” said the research house.
CIMB Research said IFCA’s revenue is now more than sufficient to cover its operating costs and as such, most of the revenue incremental growth should follow directly to the bottom line. This is shown by 3Q14’s EBITDA margin which was at 37.4% compared to 18.0% in 2Q14.
“The 3Q revenue was up 40% on-quarter at RM25.7mil. IFCA is a net cash company, RM34.9mil or 7.7 sen net cash/share as at end-September.
“With limited capex spending and R&D at only RM4mil to RM6mil annually, the company’s cash pile will continue to grow in time. In addition, by next year, we more of the warrants would be converted (143.3 million outstanding warrants, exercise price 10 sen and expires in February 2016) and this could raise additional RM14.3mil for the company,” said the research house.
Source: The Star
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Sat Jan 10, 2015 10:27 am
Stock pick: IFCA MSC Bhd
IFCA is an ACE-listed business software solution company specialising in the property industry with a market share of 70% serving more than 1,500 customers in Malaysia and Asia.
We like IFCA for its highly scalable business model and strong earnings growth in the next two years, underpinned not only by the GST software upgrade but also the sustainable web-based conversion business as well as overseas expansion.
Although IFCA’s 2014/2015 earnings will benefit strongly from the GST software upgrade in Malaysia, the perception that the company is a one-off GST play is misplaced.
Its web-based conversion and regional expansion, especially penetrating into the Chinese market with more than 40,000 property developers (versus Malaysia’s 2,300) will propel earnings to the next level far beyond the current base.
Moreover, management is hands-on and has a clear roadmap for the company going into the next three years, including potentially launching new business initiatives like e-commerce and regional mergers and acquisitions.
Other catalysts include IFCA’s first dividend payout this year, an indication of its strong cashflow and net-cash balance sheet position, coupled with the likely migration of the stock to the Main Market of Bursa Malaysia in 2015.
Valuation-wise, based on our in-house FY15 EPS estimates, IFCA is trading at a FY15 PE multiple of 12.5 times, against a two-year EPS compounded earnings growth of more than 300%. We see substantial value in IFCA at current valuations.
Risks include a recession-like slowdown in economic conditions, which results in the closing down of the business of some property developers and an unexpected rise in competition, although we think the latter is less threatening, as IFCA is far more established than its next competitor. Moreover, customers tend to be sticky with little incentive to replace a software solution once implemented.
by LEE SOOK YEE
Chief Investment Officer,
Kenanga Investors Bhd.
Source: The Star
IFCA is an ACE-listed business software solution company specialising in the property industry with a market share of 70% serving more than 1,500 customers in Malaysia and Asia.
We like IFCA for its highly scalable business model and strong earnings growth in the next two years, underpinned not only by the GST software upgrade but also the sustainable web-based conversion business as well as overseas expansion.
Although IFCA’s 2014/2015 earnings will benefit strongly from the GST software upgrade in Malaysia, the perception that the company is a one-off GST play is misplaced.
Its web-based conversion and regional expansion, especially penetrating into the Chinese market with more than 40,000 property developers (versus Malaysia’s 2,300) will propel earnings to the next level far beyond the current base.
Moreover, management is hands-on and has a clear roadmap for the company going into the next three years, including potentially launching new business initiatives like e-commerce and regional mergers and acquisitions.
Other catalysts include IFCA’s first dividend payout this year, an indication of its strong cashflow and net-cash balance sheet position, coupled with the likely migration of the stock to the Main Market of Bursa Malaysia in 2015.
Valuation-wise, based on our in-house FY15 EPS estimates, IFCA is trading at a FY15 PE multiple of 12.5 times, against a two-year EPS compounded earnings growth of more than 300%. We see substantial value in IFCA at current valuations.
Risks include a recession-like slowdown in economic conditions, which results in the closing down of the business of some property developers and an unexpected rise in competition, although we think the latter is less threatening, as IFCA is far more established than its next competitor. Moreover, customers tend to be sticky with little incentive to replace a software solution once implemented.
by LEE SOOK YEE
Chief Investment Officer,
Kenanga Investors Bhd.
Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: IFCA MSC
by winston » Sun Jan 11, 2015 7:34 pm
not vested
IFCA MSC Bhd founder and CEO Yong Keang Cheun has purchased an additional 500,000 shares, representing a 0.1% stake in the software solutions provider.
In a filing with Bursa Malaysia today, IFCA said Yong had purchased the shares in the open market on Thursday at 79.8 sen each.
Yong now holds 500,045 shares or a 0.103% direct stake, and 209.6 million shares or 43.31% indirect stake in the company.
Source: The Edge
IFCA MSC Bhd founder and CEO Yong Keang Cheun has purchased an additional 500,000 shares, representing a 0.1% stake in the software solutions provider.
In a filing with Bursa Malaysia today, IFCA said Yong had purchased the shares in the open market on Thursday at 79.8 sen each.
Yong now holds 500,045 shares or a 0.103% direct stake, and 209.6 million shares or 43.31% indirect stake in the company.
Source: The Edge
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 118788
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