Catcha’s 9MFY12 core loss of RM5m, after stripping away a one-time gain of RM18.7m from the disposal of its subsidiaries, came below expectations. We reckon the elevated opex will continue to drag down its bottomline in the near term. That said, we still believe in the growth prospects of its online media and e-commerce businesses over the longerperiod. All in, we are cutting our FY12/FY13core earnings to -RM5.4m/RM4.9m from RM6.3m/RM8.6m previously. We are downgrading the stock to NEUTRAL and trimming our FV to RM0.43 based on 12x FY13 PE.
Below expectations. Catcha’s 9MFY12 core loss of RM5m missed our expectations after stripping away a one-time gain of RM18.7m from the disposal of its subsidiaries – i) 50%-owned Auto Discounts SB, ii) Catcha Lifestyle’s Evo Business, and iii) iCar Asia Ltd (Catcha pared down its equity interest of 75% to 37.7% to complete its listing on ASX). The company continued to bleed in 3Q despite its revenue growing22% y-o-y (-0.8% q-o-q) as higher opex was incurred to ramp up its regional presence. On a 9M basis, revenue contracted by 1% y-o-y to RM27.9m while its bottomline plunged from RM1.4m to a loss of RM5m.
Downgrade to NEUTRAL, FV RM0.43. Given that its online media and e-commerce businesses are still in their infancy, the elevated opex would continue to drag down its bottomline in the near term. We are revising our FY12/FY13 core earnings to RM5.4m/RM4.9m from RM6.3m/RM8.6m previously, and are introducing our FY14 forecast as well. Our FV was lowered to RM0.43 premised on 12x FY13 PE. In view of minimal upside from the current price, we are downgrading the stock to NEUTRAL.
Below expectations. Catcha’s 9MFY12 core loss of RM5m missed our expectations after stripping away a one-time gain of RM18.7m from the disposal of its subsidiaries – i) 50%-owned Auto Discounts SB, ii) Catcha Lifestyle’s Evo Business, and iii) iCar Asia Ltd (Catcha pared down its equity interest of 75% to 37.7% to complete its listing on ASX). The company continued to bleed in 3Q despite its revenue growing22% y-o-y (-0.8% q-o-q) as higher opex was incurred to ramp up its regional presence. On a 9M basis, revenue contracted by 1% y-o-y to RM27.9m while its bottomline plunged from RM1.4m to a loss of RM5m.
Downgrade to NEUTRAL, FV RM0.43. Given that its online media and e-commerce businesses are still in their infancy, the elevated opex would continue to drag down its bottomline in the near term. We are revising our FY12/FY13 core earnings to RM5.4m/RM4.9m from RM6.3m/RM8.6m previously, and are introducing our FY14 forecast as well. Our FV was lowered to RM0.43 premised on 12x FY13 PE. In view of minimal upside from the current price, we are downgrading the stock to NEUTRAL.
Source: OSK
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