Refer to what I had posted yesterday night

Stock: [IFCAMSC]: IFCA MSC BHD

Jun 15, 2015 11:24 PM | Report Abuse

I would like you guys to think carefully

1) IFCA's business for now is non-GST related, with RM31m order book, that is about 1.3x of a quarter's revenue without reccuring income
2) Recurring income from maintenance at 20% now, soon adding more Software as a Service - boosting recurring
3) IFCA opened up 2 branches in Malaysia, Kuantan and Ipoh this year - sales to increase?
(iv) IFCA opened additional 8 offices in China, with a total now 17 offices in China - when they started expanding in 2012 & 2013, it actually generated fruits after 6 months, you could see why China actually growth superbly after 2012
(v) IFCA is making acquisition in Indonesia - they are already using SAAS, IFCA could upsell their current property software to Indonesia market - If IFCA could earn RM40m in Malaysia, why IFCA could not generate at least RM20m annually in Indonesia? think
(v) IFCA is going to main board after Q2 2015 in August - this would open up more funds to come in and buy
(vi) IFCA serves most of the main property developers in big markets, China - Wanda/R&F, Japan - Mitsui Futosan, Singapore - Capitaland, Indonesia - Wijaya Karya, Malaysia- SPSETIA/Ecoworld, this is a good brand with so much presence in all these countries and there are immerse potential for brand companies. FYI, warren buffet likes brand companies with market dominance, IFCA just suits the profile
(vii) IFCA still has alot of clients that have not employed its latest cloud based solutions, and they are coming up with 7 modules of SAAS, this would take sometime for clients to accept, but cheaper, why not right?

Weakness:
(i) High foreign shareholding - approx 10% as at Annual report
(ii) ACE market - not much local institution could support
(iii) Bad technical charts

Despite all these, I can only see a greater IFCA in the future, if you are punter, do not consider IFCA, DO NOT MARGIN. Future is going to be better for IFCA, just ask yourself whether it justified a drop from RM1.87 to nearly RM0.87 within 3 weeks? This is not K1, they just generated highest quarter profit ever, >50% drop makes sense? Not to me, I am seriously thinking to buy and invest this stock tomorrow, P/E had just decreased to only 9X 2016 P/E. That is ridiculous for a scalable business with so much potential coming, you would not want to wait until they reach mainboard only collect, then they will probably increase multifolds like INARi. I had missed IFCA big time for not riding it, but this is my time to collect from panic sellers, join me if you want someone to follow to buy with you

Stay strong IFCA holders, sorry to say I could easily buy much cheaper than you guys now

Praise the lord!

Just starting next wave, ride with me, once clear RM1 will be in safe hands

I know how their software works, I just loaded 1m shares today, see what will happen, I have laid down all my analysis yesterday, goodluck guys and enjoy the ride

I am buying to see for long term next quarter what will it be like

Ok, buying starts now

I just don't understand one thing, alot of people just yelled to sell based on baseless comments, that explains the great fall, RM1.87 to RM0.88 in 3 weeks, partly with CFO thing + 1mdb + market not so well, yes, the company should consider some share buy back, but retailers also consists of more than 20-30% in IFCA, these portions actually contributed the fall in IFCA due to innocent fellas bought into IFCA and cut loss after hearing so many baseless comments on IFCA

I will start to buy IFCA tomorrow, at your own risk guys

My 2 cents

1. Margin calls for ifca - true, but it happened to INARI last December, what happened to INARI, it actually recovered from RM1.80 to RM3.50
2, You need to know for ACE market stocks, margins are limited - not many could actually margin up to 1x compared to main board comapnies
3. Saying that IFCA did not add value in China is totally wrong, R&F/ Wanda actually subscribed to IFCA's software. You are wrong in saying that China is using Malaysia software, I would actually think otherwise, the China's R&D team is actually moving faster than Malaysia and Malaysia guys are using a much updated software from China. You can see from annual report on Chairman's comments.
4. IFCA cooked it books - In order to see this, you have to look at cash conversion ie cash flow from the company, in year 2014, IFCA had a net operating cash in flow of more than RM20m last year, this just proves that their revenue are legit.

Do read this article and see, Wanda is the largest property developer in China, and why are they using IFCA's software? Must be something right?Brand matters - i see value in the company, it is equivalent to why Apple only use Foxcon or why Avago only use INARI. IFCA stated they actually spent more than 10% of their revenue to invest in R&D, how many companies in Malaysia are doing this? I could only see one - Vitrox, and this company also performed greatly

http://www.economist.com/news/business/21643123-chinas-biggest-property-tycoon-wants-become-entertainment-colossus-its-wanda-ful-life

I would like you guys to think carefully

1) IFCA's business for now is non-GST related, with RM31m order book, that is about 1.3x of a quarter's revenue without reccuring income
2) Recurring income from maintenance at 20% now, soon adding more Software as a Service - boosting recurring
3) IFCA opened up 2 branches in Malaysia, Kuantan and Ipoh this year - sales to increase?
(iv) IFCA opened additional 8 offices in China, with a total now 17 offices in China - when they started expanding in 2012 & 2013, it actually generated fruits after 6 months, you could see why China actually growth superbly after 2012
(v) IFCA is making acquisition in Indonesia - they are already using SAAS, IFCA could upsell their current property software to Indonesia market - If IFCA could earn RM40m in Malaysia, why IFCA could not generate at least RM20m annually in Indonesia? think
(v) IFCA is going to main board after Q2 2015 in August - this would open up more funds to come in and buy
(vi) IFCA serves most of the main property developers in big markets, China - Wanda/R&F, Japan - Mitsui Futosan, Singapore - Capitaland, Indonesia - Wijaya Karya, Malaysia- SPSETIA/Ecoworld, this is a good brand with so much presence in all these countries and there are immerse potential for brand companies. FYI, warren buffet likes brand companies with market dominance, IFCA just suits the profile
(vii) IFCA still has alot of clients that have not employed its latest cloud based solutions, and they are coming up with 7 modules of SAAS, this would take sometime for clients to accept, but cheaper, why not right?

Weakness:
(i) High foreign shareholding - approx 10% as at Annual report
(ii) ACE market - not much local institution could support
(iii) Bad technical charts

Despite all these, I can only see a greater IFCA in the future, if you are punter, do not consider IFCA, DO NOT MARGIN. Future is going to be better for IFCA, just ask yourself whether it justified a drop from RM1.87 to nearly RM0.87 within 3 weeks? This is not K1, they just generated highest quarter profit ever, >50% drop makes sense? Not to me, I am seriously thinking to buy and invest this stock tomorrow, P/E had just decreased to only 9X 2016 P/E. That is ridiculous for a scalable business with so much potential coming, you would not want to wait until they reach mainboard only collect, then they will probably increase multifolds like INARi. I had missed IFCA big time for not riding it, but this is my time to collect from panic sellers, join me if you want someone to follow to buy with you

Stay strong IFCA holders, sorry to say I could easily buy much cheaper than you guys now