IFCAMSC: Earnings Soared

Result Update

In QE31/12/2018, IFCAMSC's net profit rose 571% q-o-q or 142% y-o-y to RM9.0 million while revenue increased by 49% q-o-q or 27% y-o-y to RM33 million. Higher revenue was primarily contributed in the segment of Software & Software Related Service (SSRS). With this, the Group recorded profit before tax of RM10.4 million for the current quarter which represents an increase of RM8.2 million as compared to profit before tax of RM2.2 million in the preceding quarter.


Table: IFCAMSC's last 8 quarters P&L

Graph: IFCAMSC's last 25 quarters P&L

Financial Position

IFCAMSC's financial position as at 31/12/2018 is deemed healthy with current ratio at 4.9x and total liability to equity at 0.2x. Its cash reserve stood at RM75 million or RM0.12 per share.

Valuation

IFCAMSC (closed at RM0.255 yesterday) is now trading at a PER of 13x (based on last 4 quarters' EPS of 1.98 sen). If cash in hand is excluded, IFCAMSC's PER is further reduced to 6.8x. At any one of these PERs, IFCAMSC is deemed very attractive.

Technical Outlook

IFCAMSC is in a 2 years old downtrend line with resistance at RM0.275. A tentative short-term uptrend line with support at RM0.22.


Chart : IFCAMSC's daily chart as at Feb 27, 2019 (Source: Malaysiastock.biz)

Conclusion

Based on strong financial performance, healthy position and attractive valuation, IFCAMSC is a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.