For those who just bought IFCA at 1.7-1.87 range, and who are panick because the price is down slightly, I can only say don't worry, just hold on for maximum one month, and you are very very likely to see profit. I think one of the members here bought at 1.30 and it went all the way down to 1.16 and he was panicking a few weeks ago (CIMB TP was 1.4+), now he is probably smiling as he counts his paper profit (assuming he held on).
Whilst I still believe in IFCA's longer term performance, the trader in me has prompted me to take a nice profit for now as my personal TP was met and in fact exceeded. Thank you IFCA for another great round. I will continue to monitor and re-enter when I believe it is the right time to do so. To all the staunch 'die-hard' long-term supporters...Best of luck! :-)
IFCA’s 1Q15 surged more than 22x YoY and 6% QoQ to MYR9.7m, accounting for 25% of consensus full-year estimate. No dividend was declared for the quarter.
The strong 1Q15 results were mainly attributable to a strong Malaysian operations, which benefitted from a 174% YoY jump in domestic sales and a 24ppts expansion in EBIT margin (1Q15: 57% vs. 33% in 1Q14). This more than offset its overseas operations which are still loss making.
On a separate announcement, IFCA declared that it has entered into a Heads of Agreement to acquire PT IFCA Consulting Indonesia (PICI) for MYR32m, which will be satisfied by cash (50%) and new IFCA shares (50%).
PICI is principally engaged in the provision of turnkey business solutions. PICI mainly distributes IFCA’s computer software to the property sector in Indonesia.
Post-acquisition, IFCA would become a dominant player in both Malaysia and Indonesia. It will also be able to consolidate PICI’s earnings. Funding should not be an issue as the company is sitting on a cash balance of MYR53.8m as at Mar 2015.
IFCA’s total unbilled projects in hand stood at MYR30.5m as at 31 March 2015. The group is expanding its geographical reach to secure more businesses. Apart from the latest Indonesia’s M&A, it also established two new offices in Malaysia (Ipoh and Kuantan) and seven new offices in China.
The expansion program will drive IFCA’s future earnings. Currently, the street is expecting a 50.4% 3-year net profit CAGR for FY14-17.
So far, only one broker covers the stock. The last rating was a Buy with a target price of MYR2.04, suggesting an upside potential of 12%.
Ignore all the panic sellers, be fair to your analysis, ifca fundamental did not change, just didnt hit RM11m doesnt warrant a sell down like this, buy if you can below 1.65 as I mentioned
Bilis Bilis armt ......................................... Smells fishy and rotten! Maybe thats why people dump the stock.
21/05/2015 16:23
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The price slump is NOT a negative reaction to the announcement....it is ALL TO DO with THE HAND manipulating the price slump to CAUSE all the SELLINGS so that they can BUY AT THESE PRICES and FUTHER DOWN.... for some ppl this can be FORETOLD by the TRACKERS AND CHARTS...and this fact is lost on those "Bences n BMW" drivers who act like GODESS OF INVESTMENT..... but actually NO BETTER OR HONOURABLE OR RESPECTABLA THAN the group of roughly 10 social escorts,pimps and call-girls operating from Jalan ALOR,KL who are also BENZES &BMW drivers RICHED by buying IFCAM around 0.10 last year....that I mentioned earlier...
They are the one who told me that of "the biggest investment house" GLOWING report to come with the QR announcement.....I told them price will suddenly CRASHED by whover the NEW HAND is!!beware beware beware......
They also told me to queue at the toilet for 1.70...not to mentioned 1.6X.... now they call me they are cheated by the COMPANY PEOPLE..... Remember the company ppl (left hand) doesnt know EXACTLY what the right hand (THE NEW HAND) is doing ....
They may be told 2.50 or 3.00 like the SELF-STYLED LICENSED INVESTMENT ADVISERS here...who keep on making SUCH CALLS DAILY,and also ISIS calls to KILL "CROWS"....
KINDLY ADVISE TO BE ON GUARD OF LOOSING THEIR PANTS by loss-making public' actions on them...
21/05/2015 16:41
Tomorrow will be exciting, today sell down is partly foreigners, switching funds to indonesia after snp upgraded their ratings, malaysia is doomed la, ifca is a good counter to take profit for most funds, but it has now reached the support line, should see rebound soon, if tomorrow RM1.60 just close eyes buy
Bilis2 ... don't talk3 talk4 ... if you have the money then buy if not then get lost ... nobody really understand or bother about the 'mambo jumbo' you keep on polluting this forumn with ha!ha!
@ mbnk ... great minds think alike, although I am not 100% sure it's that gas bag ... nobody else in this forumn is as 'cheong hei' as that guy so very strong posibility that both are the same guy !
More modules under SaaS? One positive surprise from the 1Q15 briefing was management’s indication that it plans to launch seven software modules under SaaS. The company also expressed its bullishness about its recently proposed Indonesia acquisition. We maintain our EPS forecasts and target price (21x FY16 P/E, in line with domestic peers). The stock remains an Add. Potential catalysts include completion of the acquisition of its Indonesia distributor and higher-than-expected take-up rates for SaaS.
Honestly I was caught in the euphoria when IFCA expect to announce best Quarter results yet...I continued to buy recklessly upward i.e. averaging up but mainly for contra trade...
Admittedly the contra trades have now become a medium term trade with the likes of Black Rock and JP Morgan..( yes I understand fro a posting that they are investors in IFCA too)..
The Q1 result was quite good with PBT at 13.6mil with unnecessary high provision of RM 3m for taxes bringing PAT attributable to shareholder to just Rm 9.7 mil...making it marginally better than 4Q14...Notwithstanding this the money is not loss, it is a provision and the PAT would be about Rm 11-12mil...
Ifca also announced that they are going regional....Getting into the Indon market is also a good strategy...
BUT the general market sold on this good news...making buy on rumours and selling on news a well proven saying..sigh..for all I care the train is on track but only slightly delayed by funds taking profits and retails getting caught, panicked, cut losses and fear of political factors..
To me the new IFCA emerges on the back of bigger regional play and SaaS...apparently starting with the HR solution system 360..( my friend is considering doing a SaaS with them)....
Hail believers and good bye to those who left for safety...
More modules under SaaS?
One positive surprise from the 1Q15 briefing was management’s indication
that it plans to launch seven software modules under SaaS. The company also
expressed its bullishness about its recently proposed Indonesia acquisition. We
maintain our EPS forecasts and target price (21x FY16 P/E, in line with
domestic peers). The stock remains an Add. Potential catalysts include
completion of the acquisition of its Indonesia distributor and
higher-than-expected take-up rates for SaaS.
What Happened
At the 1Q15 briefing, management revealed a positive surprise: IFCA is looking
to launch seven software modules under service as a software (SaaS) in
Malaysia, more than the three modules it had indicated last month. IFCA also
talked about Indonesia’s potential. There are two major areas of growth in
Indonesia: i) migration from Windows-based platform to mobile-based
platform. Currently, all customers are under the old Windows-based platform,
and ii) SaaS to target the smaller developers. Over the past 20 years, IFCA’s
distributor in Indonesia, PT IFCA Consulting Indonesia (PICC) has built its
market share to a dominant 80% in Indonesia from just the sale of two
software modules, property sales and property rental modules.
What We Think
Indonesia offers great potential and with the right strategy, sales from this
country could be larger than Malaysia’s revenue. The country’s population of
around 240m is more than 8x that of Malaysia and Indonesia needs 800,000
new houses to meet demand annually. The company has in total 13 software
modules under its umbrella and PICC only sells two modules in Indonesia. We
expect IFCA to offer more modules for the Indonesia market in the coming
months. On the subject of SaaS, the launch of seven software modules under
SaaS in Malaysia indicates that management is serious about growing its
recurring income through SaaS. IFCA has a software module for the domestic
construction and engineering market and demand should be strong among the
contractors as most do not have proper accounting systems which are GST
compliance.
What You Should Do
Remain invested in the stock. Its share price came under selling pressure
yesterday, which is not a surprise as the stock’s trading pattern is usually “buy
on rumours, sell on news”. Further price weakness would be an opportunity to
accumulate.
Calvin: Maybe you like to revisit the parameters of cash and cash equivalents, which typically include mainly1) cash and bank balances which can be confirmed by a circilarisation to the bank or reviewing bank statement and 2) cash in hand can be attested by a physical count.
IOU is a primitive term and i believe it had embraced the term promissory note quite some time back. :)
@Alpha Trader & ozzie75, thanks for the explanation. Seems like it is a really complex issue and need to be clarified on the AGM.
Anyway, I found this article, which I think the foreign exchange losses is most probably due to intercompany accounts (maybe investment on new offices, lending or inventories), just a share of thought. http://journalofaccountancy.com/issues/2012/feb/20113891.html
I still firmly believe the prospect of the company, due to its upcoming EPS will surely be another record breaking quarter. It has to be, otherwise Ken Yong would have already billed all the projects, push up the share price and distribute to the retailers. The way he plans for the timeline of everything, from unbilled amount, launching of SaaS in June (will only know how well it does in 3rd Q), the possible transfer to MB and M&A in second half of the year, it all points to gradual release of good news and catalysts to sustain the sentiment and prospect of the company. I believe he is into real big thing and we are seeing another Inari / Myeg in the making.
If the CFO had resigned because of the below alleged credit challenges, it is a blessing in disguise to me as a minority stakeholder, for it shows his/her competency in managing this financial aspect of the Company....or he/she is simply a bean-counter?
Calvin, over 90 days is not a murderous issue especially if you are engaging in international business. Further, you may wish to go deeper into the notion of 'limitations act' in the countries where IFCA operates.
calvintaneng Word of Caution on IFCA
1) Last Quarter IFCA Got RM16 Millions in receivables
This Quarter Receivables Increased to RM29 Millions
What happened to the RM16 Million Past Receivables?
B3. BUSINESS PROSPECTS
1.The Group achieved strong growth in Q1 FY 2015. 2. Our total unbilled projects in hand is RM30.5 million as at 31 March 2015
. In spite of the challenging economic conditions,
3. we continue to expand both locally and internationally
. We have established two new offices in Malaysia (Ipoh and Kuantan) and seven new offices in China
.coming soon Indonesia market and ........more
4. The Group expects to maintain its business growth momentum from China operations, GST services ) and Software As A Service (SaaS) solutions offerings in Malaysia. The internet and cloud technology enable IFCA to offer solutions on a subscription basis. The SaaS solution represents potentially a significant business opportunity as customers only pay as they use. Our SaaS solutions will be the catalyst for achieving our recurring income model strategy.
5. Group cash reserves stood at RM53.8 at 31 March 2015 ( Stronge net cash )
6. Beautiful of this company is increase huge profit but small increase in Finance cost.
2015 2014
Profit from operations 13,598,608 7 62,736
Finance costs (6,020) (5,348)
7. Profit margin increase to 30 - 35%
8. Progressive grow and expansion company with good management team.
Base on fact and not emotionally,................. ....apa lagi u mahu?
Bilis said follow him and when i call sell just buy, his followers just cursed him like hell, i grabbed tonnes from his followers today, if bilis is right, do opposite of alpha trader, that means you sell now cause i bought and bought just now
CALVIN COMMENTS
ALPHA TRADER LATER LEFT FOR TEKSENG & FINALLY DISAPPEARED ON DECEMBER 3rd 2016 WITH HIS LAST PORT IN i3 FORUM
A) Out of 1863 Companies listed in Bursa Malaysia, only 4 companies is able to make minimum Earning Per Share (EPS) RM2.00.
Name Price P/E
PANAMY 37.10 17.73
DLADY 59.00 25.67
NESTLE 84.10 30.49
BAT 44.28 16.42
HengYuan ? ?
Note :-
Ajinomoto is not include in the list due to one off gain event via land disposal.
B) So far, no company in Bursa Malaysia is reporting EPS RM3.00 per annum.
Heng Yuan has high possibility to report EPS RM3.00 per annum as strong crack spreads will drive profitability in refinery business. (Crack Spread for Mogas USD4.00 jumps to USD12.00 per barrel for August, Heng Yuan's daily capacity is 120K-156 barrels, huge additional profit while crude oil cost remains low)
Fair Valuation :-
HengYuan will be the next Super Star with higest EPS earner in Bursa Malaysia.
1) Based on minimum EPS RM2.00 per share, the lowest share price quoted in Bursa Malaysia is PANAMY at RM37.10.
2) Minimum EPS RM2.00, lowest P/E Ratio is 16 times which is 7 to 8 times higher than Heng Yuan's P/E less than 3 times.
3) If based on EPS and P/E ratio, the fair price for company EPS at RM3.00 at 16 times should be RM48.00
4) Heng Yuan's high gearing concerns is not an issue as majority is in liquidity form to fund the working capital (inventory) of the business. If the business is able to generate profit of RM 600 mil to RM900 mil, it should be debt free within two years period and cash cow from third year onwards.
5) Dividend pay-out is just a matter of time.
6) Corporate exercise like bonus issue is possible to boost liquidity in market.
HOLD TIGHT and SEE YOU AT RM37.00+++
CALVIN COMMENTS:
WILL YOU PARTICIPATE IN ANOTHER HOT HOT BALLOON STOCK?
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Sorry, raider is not to be trusted. You will lose your money to him and his gang. :-) Do you think he is there to grow your wealth? :-) Invest doing your own analysis and make your own decisions.
3iii, thanks for your advice, I bought Hengyuan because I'm confident in Hengyuan company and it's top management team, nothing much to do with Stocktrader.
calvintaneng Don't be perturbed by my posts. I realise this is a much speculated counter. Based on the expanding or good refining margins at the moment, the share price of Hengyuan and Petron have attracted a lot of attention. It is actually very difficult for anyone to be certain how to price these companies. If you are speculating for the short term, yes, please do so, with your eyes wide open and knowing full well, that you are speculating and not investing. Nothing wrong or illegal. In fact, it can be profitable or even very profitable too. On the other hand, long term investors may look at the same situations in different lights. You are not a newbie and should be well verse on these too.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
cheoky
U can stop 1st. Wait until q2 out only trumpet. People got vested interest will screw u hard
2017-08-16 23:18