IFCA MSC up 8% at all-time high since 2003 listing

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KUALA LUMPUR (Oct 27): Integrated software provider IFCA MSC Bhd's share price rose as much as 8.3% to its all-time intraday high of 58.5 sen in morning trade today.

This is the highest since IFCA's listing on July 30, 2003, according to Bloomberg data.

At 10:50am, IFCA was traded at 58 sen with 19.67 million shares transacted. It was the sixth most-actively traded stock on Bursa Malaysia.

IFCA warrant was the third most-traded counter on the exchange. The warrants rose three sen to 46.5 sen with some 28.42 million units traded.

According to Edge Research, IFCA's fundamentals are solid.

Edge Research noted that IFCA's valuations were likely to improve further as Malaysia's goods and services taX (GST)-implementation date drew nearer.

“Companies would need to upgrade or purchase GST-accredited software to adapt to the new regulations.

“So far, only 10% of IFCA’s customers have upgraded their software. This bodes well for future demand,” Edge Research says.

IFCA’s client list includes top property developers like Country Garden Holdings from China, CapitaLand from Singapore, and local developer Eco World.

Other than the 73.6% of sales derived domestically, IFCA’s overseas businesses are improving as well. Edge Research noted that IFCA was set to expand its footprint in China.

In the first half of financial year ending December 31, 2014 (1HFY14), IFCA’s net profit ballooned to RM3.4 million, outrunning total net profit of RM1.7 million in FY13.

Revenue has been trending higher through the past few years, rising from RM37.4 million in FY10 to RM52 million in FY13.