Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Wednesday, April 15, 2015

It has gained 1310% in the past one year as it is the major beneficiaries of the GST. It expects to sustain its strong growth momentum in 2015, driven by the launch of new cloud based solutions for SMEs and high growth from the China market.
Its official opines there is still huge potential for it to grow its recurring income as it launches its service as a Saas in June 2015. Saas allows smaller property companies to rent IFCA’s software.
SMEs can subscribe to its software services by paying a monthly subscription fee of rm4000 to rm5000 instead of forking out hundreds of thousands of ringgit upfront.

It is seeking to transfer to main market.

It posted a net profit of rm21.07 million for the financial year ended Dec 31 2014 from rm1.73 million in Fy2013 mainly due to the scalable nature of the software business. Revenue for FY2014 rose 71.59% to rm89.24 million from rm52 million.

It is Malaysia’s largest maker of cloud based software for property companies with around 80% market share of the domestic market. It serves major property developers including SP Setia, Mah Sing and EcoWorld.

With the implementation of the GST on April 1 2015, which forces smaller companies to computerize and upgrade their software believed it’s a very good time for IFCA to launch Saas.

The group will launch four Saas products in 2015, covering business accounting solutions for contracting business, standard operating procedures, marketing and contract management.

IFCA will not restrict itself to the property industry but will expand its services in the ICT, construction and engineering sectors.

For 2015, IFCA is also banking on growth from its China market.

It expects the China market to grow significantly in 2015, leveraging on its reputation and proven products. It accounted for 30% of the group’s revenue in FY2014.

IFCA’s clients in China include big names like the Wanda and R&F groups and Country garden Holdings Co Ltd. Other regional clients include Japan’s Mitsui Fudosan Co Ltd and Singapore’s CapitalLand Ltd.

Its Fy2104 recorded good results were not solely from GST software upgrade jobs, which only contributed 20% to its revenue in Fy2014. Its new software and cloud based products targeted at bigger property players like SP Setia, EcoWorld and Sunway Bhd had helped boost its profitability.

Currently (April 2015) institutional investors hold about 20% stake in the company.

As at Jan 23 2015, Yong holds a direct interest of 0.51% and an indirect stake of 42.48% in IFCA.

Going forward, IFCA has its contribution from China and it will still benefit from the migration from the Windows platform to a mobile based platform to a mobile based platform. Saas and its plan to transfer to the Main Market are the potential catalyst.

Tuesday, April 14, 2015

Listing Date: 14 April 2015
Issue Price: rm0.20.

It has commenced on turning itself into a prominent industry player on multiple fronts, ranging from herb cultivation to securing new distribution arrangements in the Middle East.

The listing will not only help it raise funds but also affirm its reputation. Clients in potential overseas markets, such as the US, EU and the Middle East, will be assured that it adhere to health and regulatory guidelines.

The company is expected to benefit directly from the government’s plan to grow the local herbal supplement industry over the next few years from 2015.

Its directors comprises include former Proton Holdings Bhd chief Syed Zainal Abidin Syed Mohd Tahir, former MITI secretary general Tan Sri Abdul Rahman Mamat and Tan Sri Syed Jalaludin Syed Salim, who is the chairman of the Halal Industry Development Corporation.

Its two primarily backers – MTDC and PNS, which are ultimately owned by the Ministry of Finance – have no intention of disposing of their shards port listing.

MTDC is known for investing in biotechnology of life science companies. It has been in BioAlpha since 2008 as a venture capitalist. PNS invested in 2013 as a pre IPO investor and both investors have been instrumental in advising BioAlpha on technology and business development.

Since 2008, the company has been successfully in locking in long term growth initiatives that are directly backed by the federal and state governments. In 2011, a subsidiary of the company was appointed by the Ministry of Agriculture as an entry project point partner under the Economic Transformation Programme.

The primarily target of the initiatives is to strengthen the effectiveness of locally made herbal supplements with a view of turning them into prescription drugs. The pre clinical trials have been highly encouraging and that the clinical trials are set to begin in 2016.

In Johor, a JV was set up in 2011 between the company and state owned Johor Biotech & Diversity Corp for the cultivation of herbal plants on 295 acres in Desaru. Another subsidiary was appointed by the ECER Development Council for the same purposes on 123 acres in Terengannu.

It is set to benefit from new revenue drivers. The group is on track to enter the Middle East market in the 2QFY2105 via a collaboration with Fathima Group of Companies – a retail chain in the United Arab Emirates. Its health supplements have been screened by the UAE’s health regulators and awaiting final clearance.

Its other big push comes from establishing its own brands. The company is venturing into operating its own retail outlets.

Each new outlets will be borne by cooperative licenses of MyAngkasa, a subsidiary of the Nation Cooperative Organization of Malaysia. In collaboration, Bioalpha is also hoping to promote its products to MyAngkasa’s eight million members at some point in the future.

Its revenue has grown at a CAGR of 30% over the past three financial years (FY2011 to FY2013) while profit margin has averaged 33%.

It attributes healthy profit margin to it being in charge of the entire production process by virtue of being an ODM.