IQGROUP (5107) - IQGROUP - The Next Super IOT LED Trends


IQGROUP (5107) - IQGROUP - The Next Super IOT LED Trends

Before you read my writing below, IQGROUP already covered by many bloggers and you may read what they have shared.

http://klse.i3investor.com/blogs/kianweiaritcles/101380.jsp

http://klse.i3investor.com/blogs/rarecharms/101467.jsp

http://klse.i3investor.com/blogs/ivsastockreview/103795.jsp

http://klse.i3investor.com/blogs/iqgroup/103719.jsp

http://klse.i3investor.com/blogs/discoverychannel/104392.jsp

http://politemarket.blogspot.my/2016/09/iqgroup-stock-research-analysis.html

I will only share information that might not covered by all the blogger mentioned above. And you should know that this stock already "HIGHLY" monitor by so many different bloggers, and groups of trader. This stock is highly potential to be super bull and might be good for mid to long term as well. I have the urgency to share to everyone so that you may not miss out this Great company.


I also shared earlier on 5/9/2016 to premium member:


I seldom want to write about stock lately, because quality not much stock are attract my attention. This is the latest stock come into our radar IQGROUP (5107) Shariah Compliance.

Before I started, please watch video below to understand what is Internet of Things and what future potential growth of IQGROUP:


And video below are exactly what IQGROUP heading towards:


What's the benefit if Internet controlled LED system? Save cost, effective, also very convenient ! In our country we usually lagging, but country like JAPAN, Australia, USA many already start changing especially those big Factory that consume too much electrics !

Don't forget this is just first stage, when IQGROUP ready their commercial use, every household also can benefited from it! Just imagine you just take your phone and off your room light without getting up again ! When you go holiday and still can check any lighting at home, office, factory forgot to switch off ! Cool right ! Use your phone online to check almost everything ! 


Why we like IQGROUP? We like it for many reason. One of the obvious reason is that IQGROUP are Globally Presence, in another words, they are doing International Business. Not just LED lighting but also encompassing motion sensors and wirefree door entry products.


(From the picture above, it not yet show Australia, Switzerland, and also dint mention South East Asia) But from news of this link:

http://www.thestar.com.my/business/business-news/2016/09/01/lumiqs-brand-to-generate-30-of-iq-revenue-by-2020/

Mentioned IQGROUP have started to received order from these Country. Its MEAN that IQGROUP will GROWTH Rapidly and so far so Good, WHY ?


Let's look at recent quarter result. Wow Improving ! And let's look at the price movement:


Price have been big consolidation from January 2016 to August 2016, more than half year and it's time to show bottom and price have begin a new uptrend that may go above previous high. Why?

Look into the Balance Sheet of the company:


Nett Cash of about RM 56.77 Millions ! And no borrowing at all ! You know how much is that?

The company Total shares only 88 Millions. So little and so good ! It mean

Cash per share = RM 56.77 / 88 Millions Share

                           = RM 0.645.
It also mean when you Pay this company at around RM 2.24 (closing of 15/9/2016), you already own RM 0.645 of cash, and your stock cost to own this company is just RM 2.24 - RM 0.645 = RM 1.595

When you think RM 1.595 is expensive than many penny stock then you are wrong once again. Why?

Let me teach you a new LTA Method: Why come back to this picture again?


As we know, EPS for the company averagely at least 4-7 cent recent quarter. We take average EPS 5.5.

4 Quarter easily become EPS 5.5 x 4 = EPS 22.0

When you think RM 1.595 is expensive than many penny stock then you are wrong once again. BECAUSE :

RM 1.595 / 0.22 EPS = PE 7.25 only ! PE 7.25 Mean very low PE and Undervalues  !

Without Minus Cash, Current price RM 2.24 / 0.22 = PE 10.18 Still Cheap !

Don't forget I am using Average Result as Estimation only, What if next quarter result doing much Better ?

Study the balance sheet one more time !


If averagely the company post RM 5 Millions nett profit per quarter, it only need to take 4 year to get back TOTAL share capital back. (RM 5 million x 4 quarter x 4 year) = RM 80 Million !

Where to find such a company that potentially win everything back within next 4 year? Not to mentioned the company already have RM 56.77 million cash, this mean only need RM 80 million - RM 56.77 Million = RM 23.23 million more to go for this company to win back capital. About 1 Year only if next 4 quarter make RM 5 millions !

Sound complicated? No, look at Retained Earning, almost half of its share capital already ! Only need about 2 year time frame, for the company ready to give 1 : 1 Bonus Issued. At this level, company also ready to give bonus if they want to !

If you think numbers can lie and it's boring, please look at who are accumulating over the years:

Our local version of Warrant Buffet, the Famous value investor Fong Siling have been increasing his stake in IQGROUP:

Year 2015 Top 30 Shareholder:


Year 2016 Top 30 Shareholder:




You should know that from 712000 unit become 965000 unit, it's equal to 253000 unit different. I Am very sure his average price within RM 1.80 - RM 2.50. For year 2015-2016.

Not to mentioned about their own boss also increase % too !

Look at KESM chart : 


This is the patterm of KESM before it big spike up, and we also called it at this range many time if you check back our live channel.


There are similarity for KESM and IQGROUP. Both reach a peak previously and fall due to lower profit, but once profit recover strongly, the price big shoot up. You should know that KESM thereafter big Meletup as high as RM 8 !!



I see the same go to IQGROUP. This is just the starting point for IQGROUP. Once breaking RM 2.30, next will be RM 2.60. Once result out good in November, you will no more see it below RM 3.0. And of course, this estimation are on a very bullish market sentiment as well as really good result in November. There are no guarantee to be right because we totally no Idea whether the profit can do better.

But based on their future prospect, we highly believe the company can do much better !


What is the risk of buying this Company?

Look at Dividend History below you should able to notice, coming quarter result November IQGROUP will mostly announced Dividend ! Your risk is accidentally entitled dividend next quarter !!

Looking at dividend start to give on year 2014, you know that this company are very kind because one year give 2 time dividend ! And previous quarter increase to 6 cent so high ! Must pray hard this company continue do well then will benefit to everybody because buying at RM 2.24, the potential dividend return is about 3.5% ! What if dividend increase ! Dividend return increase !! If price fall mean higher Dividend return !! Win Win Strategy !


As a conclusion: 


1. IQGROUP doing latest technology which is related to Internet of Things.
2. IQGROUP products and future are fullfilled current trend.
3. IQGROUP doing international business. RM weaker benefit to them.
4. IQGROUP Nett Cash company without single Debt.
5. IQGROUP got super investor as Top 30 share holder.
6. IQGROUP share price just bottom up. More room to go.
7. IQGROUP very good dividend payout and potential give bonus in future.
8. IQGROUP eye by various trader and also bloggers.
9. IQGROUP just covered by LTA on September !

My short term TP RM 2.60, second TP RM 3.0, third TP RM 4.0. 

Above are purely sharing information that might have errors, miscalculation, and education purpose only.

IQGROUP (5107) - IQGROUP - The Next Super IOT LED Trends
http://bursalogicanalysis.blogspot.my/2016/09/iqgroup-next-super-iot-led-trends.html