Q3 results RM 3.3mil, is within expectation as the profit mainly contributed from China only. Expect next QR will be better whilealaysia and Indonesia operation resume back to normal.

Anyone here invest in ifca not becoz of GST???

Ex- CEO during interview in 2017 has told that ifca not relying on revenue from GST anymore. Instead, investor should expect more from ifca.

The reason for me to invest in ifca
1. ROE growth YoY due to the growth in profit margin as Ifca exit the low profit margin hardware business in 2019 and focus solely on software business. This move has slightly decrease the revenue but improve the profit margin profile.

Besides, transforming the business from sales of software to renting software (SaaS) has seem temporarily decrease the revenue YoY but it will contribute stable recurrent income yearly for ifca in future. SaaS revenue of ifca has growth over 85% YoY as of 2019. SaaS business definately has higher profit margin profile than ifca traditional on premise ERP business.

3. We can expect revenue growth from launching of many cloud products from ifca recently. From my observation, ifca China team has proved to be more efficient. Since last year Feb, ifca has successfully launched 6 cloud products and has secured at least 5 big projects for their cloud products since product launching. If you read the quarter reports, you can see Ifca earning in 2020 mostly depending on China operation as Malaysia and Indonesia operation affected by MCO badly. However, if you follow ifca social website, can see Malaysia operation has actively come back into track in 2021. Thus, we can expect revenue growth in 2021 when all China, Malaysia and Indonesia business growth post pandemic as digitalisation of the business especially enable mobility is no longer a nice to have things but already become a must have things in order for them to stay competitive.

4. Based on past year record, Q4 earning is usually the highest among four quater due to ifca's customer payment mode. However, I do not has high expectations for coming QR as the earning mostly contribution from China operation only. Instead, I expect the Q1 2021 that going to release on May will improve the EPS significantly when compared to loss RM-2.7 mil in Q1 2020.

5. However, every investment come with risk. The biggest risk that I found in ifca is Indonesia operations not able to catch up the trend and continue to rely on traditional ERP business. But this will not affect the current revenue so much as indonesia operation only contribute 11% to the ifca current revenue. But if this happen, it will affect the PE valuation in future as acquisition of Indonesia business carry Goodwill of RM20 mil. However, once ifca indonesia able to pick up the trend, the business potential in Indonesia will be much much much bigger than Malaysia based on its 270 mil population size and most of the property developers in Indonesia still using the old version window based software and will upgrade their software eventually.

5. Second risk is the company management problem. Currently still no new CEO has been appointed since the ex-CEO left in 2019. If ifca can solve this
problem soon, I believe investor will have more confident with the top management.

6. Not forget to remind everyone that ifca actually has fulfilled the criteria to transfer into mainboard. Personally believe that in order to gain more reputation for it's business, ifca high chance will transfer to main board in near future. The new appointed director
has vast experience in these field.

Last coming back to GST, the implementation of GST will significantly improve the EPS and PE valuation for ifca. But it is nice to have but ifca business not solely relying on GST anymore.

Personally, my target price for ifca at least above RM1 in 2022 even if government not implement new tax regime in future. It is just a extra bonus if there is new tax regime.

Above just my very shallow opinion based on the very limited info that I have gathered. Trade on your own risk k.