KUALA LUMPUR (Sept 23): Iris Corp Bhd was among the active counters on the stock exchange today after it clinched the contract for the implementation of the goods and services tax tourist refund scheme by the Royal Malaysia Customs Department.

At 10.40 am today, Iris slipped 1 sen or 2.4% to 41 sen. The second most active counter saw trades of some 24.8 million shares.

In a note today, TA Securities said it is ‘positive’ on the project as it reverts to Iris’ core business of providing software and hardware security solutions

Hence, the research house raised its FY16 and FY17 estimates by 5.1% and 4.0% to RM49.3 million and RM60 million respectively.

TA also increased target price to 40 sen based on a price earnings ratio of 20 times against CY15 earnings per share of 2 sen.

“Coupled with Global Blue SA’s experience, we are confident of the JV’s capabilities in carrying out successful implementation of the project,” said TA research analyst Paul Yap.

Swiss-based Global Blue is the joint venture (JV) partner of Iris, which both firms have set out to form a JV company known as IRIS Global Blue TRS Malaysia Sdn Bhd for the project.

Despite positive on the contract win, Yap maintained his ‘sell’ call for the stock at 42 sen. He said there is concern in Iris’ loss making Rimbunan Kaseh and Sentuhan Kasih divisions.

“In the absent of more consistent project awards, the project will likely continue to be a drag on earnings,” he said.

From a technical perspective, Kenanga Research said Iris would see immediate support and resistance levels at 41 sen and 43 sen respectively.