• Business profile: IFCAMSC (listed in July 2003), is a business software solution company specializing in the Property industry for 28 years. It has a monopoly-like business model with 70% market share in the Malaysian property software industry. IFCAMSC has developed its software to meet the needs of property developers and property managers. These properties cover shopping malls, chain stores, residential, industrials, commercials, resorts, hotels and recreational sport clubs.
• Some of IFCA’s major cus tomers are PNB, Sime, Ecoworld, SP Setia, Mah Sing, Sunway (from Malaysia), Wanda, R&F, Country Garden Group (China), CapitaLand (Singapore), Prima Buana Internusa, Jakarta Land & Metropolitian Kentjana (Indonesia), Growth Point Group (South Africa) and Mitsui & Co (Japan). In terms of geographical breakdown, Malaysia (73%) and China (18%) were the main top two contributors, generating over 90% of FY14 revenue. At RM1.14, IFCA is trading at 11.5x FY16E P/E, still 54% below its peers ’ P/E of 24.9x.

• Poised for a triangle breakout. After hitting all time high of RM1.87 on 21 May, share price nosedived 57.8% to a low of RM0.79 on 16 June. We think that the stock experienced a “s elling climax” on 16 June when close to 109m shares were traded, and share prices gradually trending upwards to end at RM1.14 yesterday.
• The stock is building its base near RM1.09 (200-d SMA). A strong push above RM1.20 (38.2% FR and downtrend line) bodes well for the stock to retest RM1.28 (30-w SMA), RM1.33 (50% FR) and our long term objective of 1.38 (weekly mid Bollinger Band and 30-w SMA) zones.
• Supports are situated near RM1.09 and RM1.05 (23.8% FR). Cut loss below RM1.03.

Source: Hong Leong Investment Bank Research - 23 Jul 2015