Chief executive officer Ken Yong Kian Keong said about RM170 million of the sales is expected to come from new large property owners via its new property management system solutions — “PropertyX”.
KUALA LUMPUR (Nov 20): IFCA MSC Bhd (KL:IFCAMSC) said it is targeting RM440 million in new sales over the next three years mainly through new customers arising from its property management system solutions, optimising pricing and growing its distributors programme.
During the investors briefing hosted virtually on Wednesday, chief executive officer Ken Yong Kian Keong said about RM170 million of the sales is expected to come from new large property owners via its new property management system solutions — “PropertyX”.
Then the additional RM270 million will come from optimising its pricing, upgrades, replacements and by growing its global distributor partner programme, he added.
Yong said “PropertyX” is an enterprise resource planning (ERP) software that houses IT solutions for property sales and leases, property asset management, project cost accounting, financial accounting and human resources, all in one roof.
Citing his experiences with China, Yong sees government-linked corporations, financial institutions, highway concessions, hospital groups, plantation groups, pharmaceutical and data centres as possible new target markets for ERP.
Meanwhile, on optimising its pricing strategy, Yong said such strategy can be from outright pricing to a combination of outright and subscription pricing, capturing existing customers’ software upgrades to latest generation and replacement market sales, as well as growing its global distributing partner programme.
For the nine months ended Sept 30, 2024 (9MFY2024), IFCA MSC recorded a net profit of RM12.82 million, up almost nine times from RM1.46 million in 9MFY2023, as revenue grew 35.1% to RM77.8 million from RM57.17 million previously.
On Malaysia’s e-invoicing business, Yong shared that for phase 2 and phase 3 e-invoicing implementations, the company has signed up 20% or about 116 out of the total 578 customers it has targeted. This is worth about RM15.7 million revenue.
In terms of the phase 1 e-invoicing, the company had signed up 110 customers.
On recurring revenue, IFC MSC said it could reach RM40.79 million in 2025, based on the software support agreements and subscription sales.
In 9MFY2024, the company’s total sales order grew 38% to RM91.17 million from RM66.06 million last year, where the Malaysian market contributed about 64.5%, followed by China (23.4%) and Indonesia (10.59%).
The property product makes up the majority or 84% of its sales order, followed by contract (8%), hotel (4%) and human resources (4%).
IFCA MSC has unveiled a capital allocation framework that plans to retain no more than RM70 million cash on its balance sheet. On this, the company did not rule out merger and acquisition opportunities in the future but is so far more inclined towards its own development plans on hand.
As at end-October, IFCA MSC had a cash balance of RM80.33 million. On Tuesday, the company declared a first interim dividend of 1.5 sen per share, totalling RM9.04 million, which will bring down its cash balance to RM71.29 million.
In the first seven months of the year, IFCA MSC’s shares staged a massive rally from 28.5 sen to a high of 93 sen on July 3, on high expectations of e-invoicing prospects. The stock has come off its high and has traded in a volatile fashion over the past months.
On Wednesday’s noon closing, IFCA MSC was up four sen or 6.7% at 63.5 sen, giving it a market capitalisation of RM386.26 million. The stock is up 123% for the year and is currently trading at trailing 12 months price-earnings ratio of 28.83 times.
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Source: EdgeProp.my
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