|
| |
Overview
Financial Highlight
Headlines
Business Background Iris Corp Bhd is a Malaysian based company. It operates in five divisions. Trusted identification Division offers e-passports, e-identification cards, banking cards, transportation and other related trusted identifications devices and equipment. Property Development and Construction sub-division are engaged in the construction of buildings and modern integrated farms and manufacturing of Koto industrialized building systems. Food and Agro Technology sub-division provide provision of food and agro-produce and equipment. Environment and renewable energy provide provision of waste management and power and energy-related systems. Education Division offers the provision of academic, tertiary and professional courses. It generates the majority of the revenue from Trusted identification Division.
  Mabel @itch JC so how? U talk so much elsewhere but here, what's your take here? Ya lor... I have been waiting for his analysis here for ages. Share lah JC.. Let's make some money here too. :) 17/10/2019 11:03 PM  Johnchew5 With Tan Sri Vincent Tan n Tun Ling L .S...sons r substantial share holder ..the two r Tun M close buddy..Vincent Tan did hold private birthday for Tun M.. Just slow slow collect on dip.waiting IIS tender award...still far... 19/10/2019 4:48 PM wotvr I can wait. When the company was making losses. Share price around this range. Now that making profit should be at least 0.20. So hoping for better things ahead. 20/10/2019 12:50 AM  snwong13 . DO NOT MISS THE BOAT!! https://www.thesundaily.my/business/small-cap-stocks-are-2020-s-best-investment-options-says-expert-KB1506095 22/10/2019 8:03 AM itch Operator very greedy lo...not collected enough meh? What about us???when is the good news??? 24/10/2019 4:52 PM Shines Is direct deslings, you and I agreed to sell/buy a certain qty of shares at an agreed price, then both will ask their remisers to transac. 28/10/2019 7:30 AM Mabel @Johnchew5 With Tan Sri Vincent Tan n Tun Ling L .S...sons r substantial share holder ..the two r Tun M close buddy..Vincent Tan did hold private birthday for Tun M.. Just slow slow collect on dip.waiting IIS tender award...still far... 19/10/2019 4:48 PM ---- https://www.thestar.com.my/business/business-news/2019/06/11/system-to... Three listed companies are among the front-runners to bid for the multi-billion-ringgit Sistem Kawalan Imigresen Nasional (SKIN) replacement project, which will see a new integrated immigration system for Malaysia. Does anyone knows when we can expect some decision on this tender? 28/10/2019 11:44 PM kingstock007 know this company for many years, few time bet on this counter, and all ended with disappointment.. 29/10/2019 5:25 PM itch https://malaysiastock.biz/Company-Announcement.aspx?id=1180211 Mr. Ling acquired bought more shares on the 25/10. Something brewing? 30/10/2019 9:36 AM itch This Kenanga report dated 25th March 2019 seems a bit far fetch... With its technical knowhow, we believe IRIS is a strong contender for a possible IC contract tender. The group has been divesting non-core assets to re-align its business focus on Trusted ID. Based on Trusted ID’s earnings per se, the stock is only trading at 7x FY19E PER, even before factoring in any IC contract. The share overhang situation caused by a GLC shareholder is likely to blow over soon. Trading Buy with a FV of RM0.200. Strong contender for upcoming government contracts. We believe the tender for the supply of MyKads could possibly be opened up soon, given that the existing RM260m contract (carried by a competitor currently) is expiring end-2019. Although MyKads have not been fully delivered under the existing contract, we understand that there are no ramifications upon the expiry. We believe it is also in the Malaysian government’s best interest to open up the tender to ensure fairer competition and better pricing, and IRIS’ technical knowhow and capabilities in digital ID render it a strong contender for the contract. Based on our back-of-envelope calculation and assuming 15% lower contract value, we estimate that the IC contract could generate c.RM15m PAT (c.30% of FY20 CNP) annually from FY21 onwards. Out with the old, in with the new. It is interesting to note that there has been a change in substantial shareholders, which saw Dato' Rozabil Abdul Rahman (executive director of IRIS) rapidly paring down his stake in IRIS, from a peak of 320m shares (10.8%) on 21 Sep 2018 to 117m shares (3.9%) on 25 Jan 2019. Interestingly, Dato’ Sri Robin Tan (eldest son of Tan Sri Vincent Tan) has emerged as a substantial shareholder with 247m shares (8.3%) on 21 Sep 2018, and has subsequently upped his stake to 271m shares (9.1%) at present. Starting with a clean slate. The group has been divesting non-core assets to realign its business focus on Trusted ID, which involved kitchen-sinking impairments and write-offs of c.RM316m over FY17 and FY18. The exercise, which is almost concluded, has helped stem the bleeding from the non-core assets and brought the group back into profitability in the past three quarters. We believe the few remaining non-core assets, which are still dragging earnings with aggregate losses of >RM40m annually, could be disposed of this year. Based on Trusted ID’s earnings per se, the stock is only trading at 7x FY19E PER, even before factoring in the IC contract (refer overleaf for details). Overhang to be over soon. The continuous share disposals (likely due to non-fundamental-related reasons) by a GLC shareholder have probably been the impediment to IRIS’ share price improvements since 2018. Thankfully, the shareholder has ceased to be a major shareholder on 21 Feb 2019 (from c.21.3% stake in early-2018). Currently, we believe the shareholder has only 3-4% stake left in the company, signifying that the share overhang will likely blow over soon. Project FY19-20E CNPs at RM24.7-48.9m. The sturdy growth expected in FY20 is largely fuelled by the discontinuation of non-core businesses and 10% top-line growth in Trusted ID (vs.10-15% guided). Trading Buy with a FV of RM0.200, based on FY20E PER of 12.0x, a discount to its peers’ 18x given its ACE market status and smaller earnings base. Although IRIS’ market capitalisation is c.40% smaller than that of DSONIC’s, its superior earnings growth warrants a slightly smaller discount rate of 30%. Post-disposals of non-core assets, IRIS’ earnings are expected to bounce back with a vengeance in FY20 (+98%). In addition, the stock only trades at FY20E PER of 8.5x, which limits its share price downside, while providing investors with opportunities to buy into its potential to win the IC contract. Continue... 11/11/2019 3:04 PM itch OTHER SALIENT POINTS Commendable visibility. IRIS is touted as the pioneer of multi-application electronic national ID. It currently serves a diversified customer base across 38 countries, with a total order-book of RM2b, offering commendable visibility in the Trusted ID segment for the next 5 years. Starting with a clean slate. Since Dato’ Paul Poh joined IRIS as the new management in 2017, the group has been divesting non-core assets to re-align its business focus on Trusted ID. To this end, the group has conducted a major kitchen- sinking exercise involving impairments and write-offs of c.RM316m over FY17 and FY18. This has helped to stem the bleeding from the non-core assets and brought the group back into profitability in the past three quarters. The exercise is almost concluded, with only a few more non-core assets remaining such as its Food and Agro (Rimbunan Kaseh) and mining (Plaman Resources) businesses, which are still dragging its profitability. We believe that the Rimbunan Kaseh project could be handed over back to state government by the end of 1HCY19, while the intended disposal of its mining business in New Zealand could potentially be concluded this year as well, pending approval from local authority. Under the Trusted ID segment, we understand that its contract to supply 2.5m units of 32-page Nigerian electronic passports (contract value: c.RM170m) is expiring in August this year while the contract from the Senegalese government to supply 10m multi-application ID biometric cards (contract value: c.RM346m) is being fulfilled (>80%) well ahead of expiry in mid- 2021. Again, given IRIS’ technical knowhow and capabilities in the digital ID space, we believe the contracts could possibly be renewed as soon as this year. Based on Trusted ID’s earnings per se, the stock is only trading at 7x FY19E PER, even before factoring in the IC contract. Currently, the bulk of Trusted ID revenue comes from the African continent (70-80%), while Malaysia contributes less than 10% of total revenue. Risks include unexpected cancellation of contracts, failure to renew contracts before expiry and cost overruns. 11/11/2019 3:06 PM Mabel @itch Still waiting for that 0.20c ... Sound good to me itch! Thanks for sharing the above reports. Cheers! 11/11/2019 4:05 PM  |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
