KUALA LUMPUR (May 21): Turnkey software solutions provider IFCA MSC Bhd is one of the top losing counters today, after declining as much as 10.44%, despite recording higher profit in its first quarter ended March 31, 2015 (1QFY15), following its announcement yesterday (May 20) of a RM32 million Indonesian acquisition.
At 3.34pm, IFCA MSC (fundamental: 3; valuation: 0.80) was trading at RM1.65, down 9.34% or 17 sen, with 22.07 million shares done. Year-to-date, the stock has gone up 120% from 75 sen to its current price of RM1.65. The current price gives it a market capitalisation of RM910.29 million.
Its warrants — IFCAMSC-WA — was also down. At 3.34pm today, it was trading at RM1.59, down 8.9% or 14 sen.
According to The Edge Research, IFCA MSC is currently trading at a price earnings ratio of 47.54 times.
Yesterday, the group announced its 1QFY15 results, which showed its net profit at RM9.68 million, 23 times its 1QFY14 net profit of RM421,000. Revenue also grew to RM31.98 million, from RM13.69 million previously.
The group had said its strong profit represents a strong billing quarter for software implementation works done for the quarter.
IFCA MSC’s overseas business revenue for the quarter grew 32% to RM5.2 million, while its business in Malaysia grew 143 times to RM30.1 million. The group has RM30.5 million in unbilled projects as at March 31, 2015.
Meanwhile, the group announced yesterday that it had entered into a heads of agreement with Indonesia-based PT IFCA Consulting Indonesia (PICI) to acquire the latter’s business for RM32 million.
PICI is principally engaged in the provision of turnkey business solutions and mainly distributes IFCA’s computer software to the property sector in Indonesia.
(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.)