Stock With Momentum: IFCA

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This article first appeared in The Edge Financial Daily, on October 9, 2015.

IFCA Msc Bhd (+ve)

SHARES of IFCA (Fundamental: 3/3, Valuation: 1.5/3) rose 3 sen or 3.2% to close at 97 sen yesterday. Trading volume was 4.1 times the 200-day average, with 85.8 million shares changing hands.

The company is a software solutions provider that focuses on the property sector. A significant 80.1% of 1H2015 sales were derived domestically.

For 1H2015, revenue jumped 74.9% y-y to RM55.9 million while net profit surged 349.3% to RM15.4 million. The good performance was attributed to strong demand for software implementation works. As at June 30, unbilled orders stood at RM30.8 million.

On May 20, the company proposed to acquire PT IFCA Consulting Indonesia’s business for RM32 million. 50% will be satisfied in cash with the balance via the issuance of 16 million shares at RM1.00 each. This acquisition has yet to be completed.

The stock currently trades at a trailing P/E of 15.9 times and a hefty 6.1 times book