KUALA LUMPUR (June 16): The sharp fall on IFCA MSC Bhd’s share price, which has more than halved from its peak of RM1.84 in a short span of four weeks, has prompted Bursa Malaysia to issue an unusual market activity (UMA) query to the IT solution provider.
“We draw your attention to the sharp fall in price and high volume of your company's shares recently,” the bourse told IFCA according to the latter’s filing.
Bursa Malaysia urged IFCA to make enquiry to its directors, major shareholders and such other relevant persons in respect of corporate development that has not publicly announced, including those in the stage of negotiation.
Last week alone, IFCA (fundamental: 3.0; valuation: 0.8) slid 33 sen or 29.5% to RM1.12 per share on Friday (Jun 12), it dipped further to 90.5 sen yesterday.
The stock regained some lost ground to close 15.5 sen or 17% higher at RM1.06 today with 108.92 million shares changing hands. It is the most actively traded counter on Bursa Malaysia today.
Earnings wise, IFCA, the best performing IT stock in Asia Pacific last year, achieved a big leap in its net profit, which was RM20.77 million, or 4.58 sen per share, for the financial year ended Dec 31, 2014, against RM1.73 million, 0.38 sen per share in FY13.
For the first quarter ended March 31, IFCA continued to see huge jump on net profit to RM9.69 million, from a mere RM421,000 in the previous corresponding quarter.
Quarterly earnings per share (EPS) ballooned to 1.8 sen versus 0.09 sen previously.
To annualise its quarterly profit, IFCA’s EPS would be 7.2 sen. Based on the annualise EPS, the stock is trading at price-earnings ratio of 14.7 times.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)