Catcha Media’s 9MFY11 core earnings of RM1.5m fell short of our expectations, at 63% of the full-year estimate owing to weaker-than-expected contribution from its online media business in 3QFY11, which led to a core net loss of RM0.9m for the quarter. That said, we see a much better 4QFY11 as maiden contribution from newly acquired Haute Avenue kicks in. Investors should look beyond the headline numbers and leverage on Catcha’s niche presence in internet media as we believe its acquisition of a strategic 50% stake in Carlist.com.my would open up a new earnings stream and beef up its strategy to become an internet media conglomerate. Hence, maintain BUY at an unchanged FV of RM1.21, based on 12x FY12 PER.
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