CIMB Research: Catcha Media severely undervalued

KUALA LUMPUR: CIMB Equities Research said Catcha Media is severely undervalued as it trades at less than the value of its stake in iCar Asia Ltd.
The research house said on Friday the Australia-listed iCar Asia is Asean's top online auto classified portal.
“This
attributes zero value to the advertising and e-commerce businesses and
investors are getting them for free. “Our target price of 96 sen a
share is based on a bottom-up sum-of-parts (SOP) based methodology,
which implies an upside of 45%,” it said.
CIMB Research said its valuation was transparent as 58% of its SOP value is derived from iCar Asia Ltd's market cap on the Australian Stock Exchange.
“Catcha Media has been overlooked and appreciation of its business and outlook is a catalyst,” it said.
Listed
on the ACE Market of Bursa Malaysia in 2011, the stock has languished,
now 30% below the IPO price, due to the different media platforms in
its stable that appear unrelated.