FIGURE 1: IRIS CORPORATION
BERHAD LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2020 annual report.
1.
GENERAL
INTRO: Iris’s core business is in providing e-identification solutions.
2.
NOTABLE
POINTS:
a. IRIS is an integrated solutions provider for
eID, ePassport, eVisa, Automated Border Control (ABC), smart cards, secure
documents, mobile attendance, access control with facial recognition, mobile
quarantine and other Trusted ID solutions.
b. The track record achievements of IRIS so far: As
of March 2020, it has delivered more than 97.4 million pieces of ePassport
and/or Inlay to 14 countries, it has delivered more than 156.3 million pieces
of eID and/or card-based driving licenses, it has delivered more than 225.2
thousand contact / contactless card readers and devices sold to 28 countries
and it has delivered more than 41.3 million pieces of Payment, Loyalty and
Transportation cards.
3.
IS
THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 229.5 million as
reported in 2020 annual report, this is a medium revenue company. Between year
2012-2020, the counter’s revenue has been on a downward trend. The Profit
Before Tax (PBT) and Profit After Tax (PAT) is steady during this period,
except for a dip in FY2018 to –RM100 million.
b. SHARE PRICE: from Jan 2016 to Mar 2020, share
price is around RM0.15, since Mar 2020, share price has surged to around
RM0.40.
c. EARNING PER SHARE (EPS): earning per share in
last 5 years was overall fluctuating, ranging from -12.28 to 1.4 sen.
d.
PRICE TO EARNINGS (P/E) RATIO: N/A
e.
FUTURE POTENTIAL/PROSPECTS: share price expect
to be stable in the next few years.
f. CAPITAL EXPENDITURE (CAPEX): spending on
purchase of new fixed assets and other investments amount to about RM 8.7
million, which is around 1% of total assets.
4.
IS
THIS A STRONG DIVIDEND STOCK?
a.
DIVIDEND YIELD: in 2020 financial year, IRIS did
not declare a dividend payout to its shareholders.
b.
DIVIDEND PAYOUT RATIO: N/A
c. CONSISTENCY: This counter’s dividend payout has
been inconsistent (dividend paid to shareholders in 0 year out of 5 years).
5.
IS
THE MANAGEMENT PERFORMANCE GOOD?
a.
RETURN ON EQUITY (ROE): in 2020 financial year, IRIS
reported a poor return of shareholders’ equity, at 3.73%.
b.
COST-TO-INCOME RATIO: the cost-to-income ratio
is 1154%, which is quite high.
c. DEBT-TO-EQUITY (GEARING) RATIO: Its gearing
ratio is at 83%, whereby its debt level is less than its equity, resulting in a
healthy balance sheet.
d.
CASH FLOW: cash flow is positive, at around RM 63.2
million, equivalent to RM 0.02 per share.
6.
OTHER
INDICATORS:
a. SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 8 institutional
investors at top 30 major shareholders list, including few investment funds but
not including insurance funds. Its major shareholders are Orientalgold Equity
Sdn Bhd (11.64%) and Dato’ Seri Robin Tan Yeong Ching (9.8%).
Disclaimer:
The content of the blog posts are for sharing purpose only. Readers are
encouraged to carry out further research and analysis as well as follow up
latest update information before making any investment decisions.
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