Catcha Media (CHM)’s FY12 results were disappointing with a core net loss of RM13.6m, after stripping out a one-time gain of RM18.7m from the disposal of its subsidiaries in 3QFY12. CHM’s operating environment continues to be challenging, as the internet business in Malaysia has yet to be fully developed. Thus, we are maintaining our NEUTRAL recommendation on CHM, with our FV lowered to MYR0.33 based on a 9x FY13f PE, reflecting our concern on the media sector and the group’s infancy in its internet business.
Disappointing quarter. Catcha Media’s FY12 core net loss of RM13.6m was way below our expectations, after stripping out a one-time gain of RM18.7m from the disposal of its three subsidiaries in 3QFY12, namely: (i) 50%-owned Auto Discounts, (ii) Catcha Lifestyle’s Evo Business, and (iii) iCar Asia Ltd. The group’s 4Q performance was weaker q-o-q, with topline and core net profit down by 1.8% and 13.6% respectively. Loss before tax from online media (-RM0.12m), e-commerce (-RM7.6m) and online classified (-RM1.3) segments offset the profit before tax from the publishing unit (+RM0.53m).