KUALA LUMPUR (Feb 2): Despite beating various e-government service providers to bag an RM1.16 billion government contract for an immigration system, shares in Iris Corp Bhd did not receive the expected boost today. 

In contrast, the stock slipped 3.5 sen or 8.5% to 40 sen as at 10.10am, bringing its market capitalisation down to RM1.2 billion.

It was the most active counter so far in Bursa Malaysia's morning trading session.

The stock’s trading volume surged to 460.11 million shares, exceeding its 200-day average of 108.41 million.

Meanwhile, it is worth noting that its share price rallied from 26 sen on Nov 2 to a high of 44 sen on Dec 31.

The group announced in a filing with Bursa last Friday that its wholly-owned subsidiary Iris Information Technology Systems Sdn Bhd had received a letter of award (LoA) from the Ministry of Home Affairs to develop and deliver the immigration system.

It said the project will contribute positively to earnings of the group during the tenure of the LoA.

Given the scant information revealed in the filing, some quarters said it was hard for investors to assess the earnings contribution that the project would generate for a period of 54 months from March 1, 2021 until Aug 31, 2025.

Others also commented that the profit margin might not be that lucrative since there was intensive competition to bid for the project.