IRIS: Improved March 2024 QR after Consolidation and Capital Reduction?? Look deeper!

Below is my conversation in i3 Forum:

“IRIS i3 Forumer > IRIS Malaysia 4th-Quarter 2024 & 12 months ended March 31, 2024 Earnings Summary Table…12 months ended Mar 31, 2024 Revenue 371,108,000 PreTax Profit 40,380,000 Net Profit 32,247,000 Earnings Per Share 3.95 Sen..”

“BLee: Yes, very good return of 3.95 sen over present market price, more than 10% return. Another point, good Consolidation with account adjustment. Share capital adjustment ( Capital reduction pursuant to Section 116 of the Companies Act 2016 (430,000k) ) to 180,759k from 610,759k seeing Retained Earnings/(Accumulated losses) to positive 169,400k from negative (293,828k). Cash flow also improved: CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD, 142,029k from 104,801k.

Happy Wesak for those who celebrate, and Happy Holiday to the rest.. Iris is/was one of my big winners during the National Integrated Immigration System (NIISe) bidding period a few years ago. Bought at 15.5 sen and sold 80% from around 30 sen up to around 40 sen. Will post my trade later if still can dig up those data as it was traded quite long ago. Happy Trading and TradeAtYourOwnRisk.”

Let's dissect how is it possible the reported EPS of 3.95 as the four QR EPS of 0.3, 0.24, 0.32 and 0.53 added together did not tally. Actually, the 0.53 (due to 4 to 1 Consolidation) adjusted, Comparatively lower than the first 3 QR...the corrected version as stated in item 25, page 21 i.e. Earnings of 32,247k vs adjusted NOSH of 815,728k. Very misleading figures if we just based on EPS for investing! I also thought Capital Reduction is ‘bad’; but the reported data show otherwise??

Detail 1: The bar graph shows very erratic, high up high down, especially the last quarter (due to Consolidation and Capital Reduction?).

Detail 2: Managed to dig out 2 sell trades, not the buy trade.

Disclaimer: A very amateur dissecting this very complicated reporting due to Capital Reduction and Consolidation. Therefore, any error to be excused…