Stock Name: CATCHA
Company Name: CATCHA MEDIA BERHAD
Catcha Media Bhd
(Aug 18, 81 sen)
Initiating coverage at 84 sen with buy call and fair value of RM1.21: Given our 'overweight' stance on the media sector on the belief the sector will still flourish in 2H11 despite the global turmoil, we like Catcha Media's direct exposure to the industry. According to AC Nielsen, Malaysia's 1H11 advertising expenditure surged 11.6% year-on-year to RM3.9 billion. Spurred by factors such as an impending general election and the upcoming major festive celebrations, we reiterate our view that the media sector as a whole will continue to prosper in 2H11 to close the year at two to three times our revised 2011 GDP forecast of 5.1%. Hence, we believe Catcha Media will directly benefit from sturdy advertising spending and see this as an opportune time to get exposure in the Internet media segment.
The development of the online media industry relies heavily on the growth of the average Internet speed provided by local Internet service providers. With the introduction of fibre-optic broadband services in Malaysia with average surfing speeds of five to 20Mbps, we see vast potential for Internet advertising to mushroom on improved transmission of content and enhanced web browsing experience. These present great opportunities for Catcha Media to capitalise on given the potential exponential growth in Internet adex as surveys show that the online media industry will bloom as Internet infrastructure becomes more established.
Catcha Media entered into a strategic alliance with Microsoft and Lowyat.net in 2009 to manage its online properties by selling advertising space on their respective portals. We see great potential in these two core web portals given the vast volume of Internet traffic, which stood at a combined 10 million unique users per month as at October 2010. We also understand that management is working to secure two more online properties by the end of this year, with at least one million unique users per month each. ' OSK Research, Aug 18
This article appeared in The Edge Financial Daily, August 19, 2011.
Company Name: CATCHA MEDIA BERHAD
| Research House: OSK | Price Call: BUY | Target Price: 1.21 |
Catcha Media Bhd
(Aug 18, 81 sen)
Initiating coverage at 84 sen with buy call and fair value of RM1.21: Given our 'overweight' stance on the media sector on the belief the sector will still flourish in 2H11 despite the global turmoil, we like Catcha Media's direct exposure to the industry. According to AC Nielsen, Malaysia's 1H11 advertising expenditure surged 11.6% year-on-year to RM3.9 billion. Spurred by factors such as an impending general election and the upcoming major festive celebrations, we reiterate our view that the media sector as a whole will continue to prosper in 2H11 to close the year at two to three times our revised 2011 GDP forecast of 5.1%. Hence, we believe Catcha Media will directly benefit from sturdy advertising spending and see this as an opportune time to get exposure in the Internet media segment.
The development of the online media industry relies heavily on the growth of the average Internet speed provided by local Internet service providers. With the introduction of fibre-optic broadband services in Malaysia with average surfing speeds of five to 20Mbps, we see vast potential for Internet advertising to mushroom on improved transmission of content and enhanced web browsing experience. These present great opportunities for Catcha Media to capitalise on given the potential exponential growth in Internet adex as surveys show that the online media industry will bloom as Internet infrastructure becomes more established.
Catcha Media entered into a strategic alliance with Microsoft and Lowyat.net in 2009 to manage its online properties by selling advertising space on their respective portals. We see great potential in these two core web portals given the vast volume of Internet traffic, which stood at a combined 10 million unique users per month as at October 2010. We also understand that management is working to secure two more online properties by the end of this year, with at least one million unique users per month each. ' OSK Research, Aug 18
This article appeared in The Edge Financial Daily, August 19, 2011.
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