IRIS 0010 IRIS CORPORATION BERHAD Is the government going to play ‘NIISe” and let Iris fly?
Iris Corp Bhd saw much trading interest on April 18, surging 15% to close at 12 sen.
The counter has been languishing at its 52-week low of 9 sen in recent weeks.
However, news of Iris getting to kick start the billion ringgit Immigration system project after much delays, sent the counter flying high.
The counter started to be actively traded after Immigration Department Director General Datuk Seri Khairul Dzaimee Daud said the Home Ministry had set aside RM900 million for the roll-out of the National Integrated Immigration System (NIISe) in two years.
He said the new system is expected to be a game changer that would improve the department's efficiency and customer experience.
NIISe, which is currently developed by Iris Corp Bhd, will replace the current Malaysian Immigration System (myIMMS) that the department has been using for about 13 years.
It will converge all immigration transactions, including passport renewals, visa applications, applications and renewals of permits for foreign workers.
Understandably, any statement from the relevant government would have caused much excitement given the uncertainties surrounding the project.
Well, Iris won the Niise project a couple of years back with a bid value of some RM1.2 billion.
However, in March, Iris faced major selldown pressure after the government was rumoured to have cancelled the RM1 billion NIISe due to slow progress.
And now in April, the government has decided to go ahead with the major overhaul.
There is no denying that if Iris is finally given the mandate to proceed with NIISe, this will be a major boost to the company.
The company has been on the mend, charting commendable results in 3Q ended Dec 31, 2002.
Its net profit more than doubled to RM7.5 million in 3QFY23 from RM3.2 million a year ago.
Revenue grew to RM87.2 million from RM72.4 million.
The higher revenue in this financial quarter is mainly due to higher delivery of cards and epassports for overseas projects.
It also recognised revenue from an existing domestic project in the quarter just ended.
So far, nothing has been set in stone but the interests in the counter are mostly based on the rumours surrounding NIISe.
It may be another rollercoaster ride for investors looking for a ride with Iris.
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