KUALA LUMPUR (Aug 17): IFCA MSC Bhd rose some 6.33% this morning, after it reported a net profit of RM2.51 million yesterday for its second quarter ended June 30, 2017 (2QFY17), on the back of higher revenue, compared with its net loss of RM535,000 a year earlier. 

The business software solution provider registered quarterly revenue of RM20.58 million, up 14.48% from RM17.98 million, due to higher sales contribution from its overseas segment.

The stock was up as high as 8.86%, after paring some gains this morning.

At 10.45am, the stock was up 2.5 sen or 6.33% to 42 sen, with a two-week trading volume high of 32.66 million shares, for a market capitalisation of RM240.26 million. It is the second most actively-traded counter on Bursa Malaysia. 

Year-to-date, the stock has surged about 60.31%, from 26 sen.

CIMB Research said in a note today that the stock remains a Hold despite its better 2Q results, as the research house does not see any immediate catalysts.

CIMB Research analyst Nigel Foo expected higher export growth from China and Indonesian markets in 2QFY17, but growth appeared to be slowing in these markets.

The positive was that 2QFY17 domestic revenue surprisingly rose 13% q-o-q to RM26 million, Foo said.

“We are hopeful that this is a sign of better times ahead for the domestic property division,” Foo added.

Foo said cost cutting has helped the company stay in the black during the past one year, and that he is hopeful of a further recovery in the domestic market in 2HFY17.

“Currently, in the domestic property market segment, the affordable apartments segment is still vibrant,” Foo said, adding what is also positive for IFCA is that the company continues to get maintenance revenue, which he estimates to be around RM20 million annually.