KUALA LUMPUR (June 15): IFCA MSC Bhd shares extended losses today, falling as much as 16 sen or 14.29% to 96 sen in intraday trade.
As at 2.48pm, the information technology solutions provider saw 43 million shares change hands. It was the second most active counter on Bursa Malaysia today.
IFCA's (fundamental: 3; valuation:0.8) share price has been on a downward trend since it announced its first-quarter financial results on May 20. From the closing price of RM1.82 on May 20 until 96 sen at 2.48pm, the counter saw its share price declined as much as 47.25%.
As at 3.09pm, its warrants also fell by 16 sen or 16.08% to 83.5 sen in intraday trade, with 7.3 million shares done.
Alliance Investment Bank Bhd remisier Raymond Foo said the downward trend was due to speculation as IFCA's price-to-earnings ratio (PER) is higher than its earnings per share (EPS).
He said the stock was traded at a high PER, as the share price had gone up drastically for the past one year, from 10.5 sen on June 16 until RM1.82 on May 20, but its EPS as at March 31, 2015 stood at a mere 1.8 sen per share.
“The counter has reached a critical point which it may breach its 90 sen support level. Should it breached the 90 sen level, I think the counter will continue to slide downwards,” Foo told theedgemarkets.com today.
He added that if IFCA does not manage to maintain its financial performance, which is to earn at least RM10 million per quarter, its share price performance will also be affected.
For the first quarter ended March 31, 2015, IFCA posted a net profit of RM9.69 million on revenue of RM31.98 million.
(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.)