To summarize, basically it says Catcha is not doing well and below their expectation. It in fact made losses over half year 2012. However, the investment banking firm expects the company to turnaround with better results due to the following:
- its foray into online regional auto (via iCar) portal looks good in the future;
- its acquisition of an online e-commerce business Haute Avenue looks good as it promised a profit guarantee of SGD1.5m per annum.
My analysis
I am looking at the perspective of business. How it will trade I do not know as the company seems to be short on float. Hence it is easier to manoeuvre the share price by traders.
Catcha
Media is a company which has not shown any strong potential. Its drop in
revenue as well as registering losses despite its expectation of doing much
better after its listing really disappoints. Over the last year, after its
listing it has gone on acquisition (Haute Avenue) and exercise (iCar listing in
Australia) to boost up its revenue and future. Those are exercises, but not
something of substance as yet.
If it is
claiming its foray of having a regional car web portal will succeed - that I
have yet to be assured of. It is not that there are no automotive portal.
Jobstreet acquired Autoworld.com.my years ago. For a company which has much
cashflow than Catcha and already has proven ability in terms of building a
dotcom business is not able to turn the business into something worthwhile. The
most followed blog / portal for cars in Malaysia is www.paultan.org. I do not
see Paul Tan making much despite he is very much widely followed. (I respect his ability to pull crowd though - it's not easy)
Success
in Malaysia does not mean success in any other parts of South East Asia. Jobstreet is largest in
Malaysia and Philippines. JobsDB is most successful in Singapore, Thailand and
Hong Kong. Seek.com is largest in Australia.
I do not
see an online portal on high end fashion been able to prove successful in any
parts of the world. How is Haute Avenue being foreseen to be so?
For now
based on the below financials as at half year 2012, it is showing more pain
than gain. Its cashflow does not seem good as well with less than RM3 million cash remaining. Its listing in Australia for iCar may have raised it some cash for the South East Asian portal but making it successful is different from convincing investors to put in cash.
My question is, how is the analysis by the investment bank going to be prove us
otherwise?
The only one substantial is iProperty.com which to some extent increased its presence nicely. However, if you look at the expenses, it has much revenue from other sources which is event management. Hence iProperty made much from event management as well as online services (although its Annual Report does not tell us anything). And in fact, iProperty still loses money despite it trying to expand at a vigorous speed.
The only one substantial is iProperty.com which to some extent increased its presence nicely. However, if you look at the expenses, it has much revenue from other sources which is event management. Hence iProperty made much from event management as well as online services (although its Annual Report does not tell us anything). And in fact, iProperty still loses money despite it trying to expand at a vigorous speed.
Just in case you are interested, below is the Proforma Income Statement for iCar which is expected to be listed in Australia.
4 comments:
Great analysis. I thought online business is great and with genting director also joining, luckily i din buy last time, if nt,cry alr now.
Great analysis. I was about to think that Catcha is a good company until I read your throughout analysis. Totally concur!
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