IQGroup (5107) - Earning Back On Track!

IQ-group is a well established supplier of security and convenience products to some of the world’s major retail and wholesale companies. We have an enviable reputation for design, innovation, quality and value and are a leading global provider of motion sensors, wirefree radio and door entry products. The Group employs approximately 1300 people, with manufacturing operations being centred in Malaysia and China, marketing in the UK and sales & marketing in Japan. Our services are grouped into the following areas: design, manufacturing, marketing, logistics and customer service.

The majority of our customers are either involved in retail DIY distribution, predominantly within the UK, European, Japanese and North American markets or they are major International electrical distribution groups supplying a broad and diverse branded product offer to both the DIY and professional trade markets.


Results,

On the quarterly results table above, the company earning has recover on the latest quarter and goes back to EPS of 7.36sen compare to previous two quarter of 5.87sen in Q3 and 2.45 in Q2 results.



Cash Rich and Increasing,

In the past 4 years, we can see that the cash c/f of the company increase from Rm 7.11m til Rm 43.16m in year 2015 March reports.


In the latest result announced on August for Q1 2015, the cash of the company increase again to Rm 44.234m equivalent to (50 sen per share)  compare to previous quarter Rm 43.16m,

Dividend,

With the cash increasing, the company started to pay dividend started last year which announce on 27 Nov 2014 and 29 May 2015, with total div of 8 sen.


Chart,

Company share price has all the way fall down from the top after the share price touch Rm3.20 level with the weak report in Q3 and Q4 2014 results.

Latest earning has back on track, but share prices still haven't recover and currently support level at around Rm 1.92 with RSI 27 (oversold).



Summary,
Company earning back on track and with the strengthen in USD also benefited to the company earning and also with strong cash flow & dividend support, i believe is good time to collect before the share price recover.

RHB target price : Rm2.95 (24/07/2015)

My Target price : Rm2.50


Happy Trading!

Regards,
nick loke