The Star Online: Business
The Star Online: Business |
- CEO: Catcha Media won’t be taken private — for now
- Sarawak politically-linked stocks rally
- Jala: GST could add up to RM27bil to country’s income
| CEO: Catcha Media won’t be taken private — for now Posted: 17 May 2013 05:17 PM PDT PETALING JAYA: Catcha Media Bhd would not be taken private for the time being, although major shareholders might do so if its shares remained flat till the end of the year, said chief executive officer Patrick Grove. The integrated media outfit's founder told StarBizWeek that several private equity funds had approached him about the possibility of buying out the company. However, the long-time entrepreneur told them that he would prefer to keep it listed. Though he did not name the parties, Grove said two funds, one local and the other a US-based firm regionally headquartered in Singapore, had expressed interest in taking Catcha Media, which debuted on the ACE Market in 2011 at 75 sen a share, off the market. Grove was responding to a research report by CIMB Research issued yesterday that suggested Catcha Media could be privatised by private equity funds. "We gather from a recent visit that management may consider this option if Catcha Media's share price remains depressed. In our view, any buyout price is likely to be above the 75 sen initial public offering (IPO) price, as this would alleviate the pain of long-suffering shareholders. "Management is also seeking to sell equity in Catcha Media's subsidiaries, which would establish their valuations," the brokerage said. CIMB Research opined that Catcha Media was "deeply undervalued", as its current share price stood at a 51% discount to the research house's target of 96 sen. "At Catcha Media's current price, its market valuation is approaching irrational levels, as this is 15% below its holdings in iCar Asia. This means investors are getting the advertising and e-commerce businesses for free," CIMB Research wrote. Australia-listed iCar Asia is 30%-owned by Catcha Media and Asean's top online auto classified portal. Grove echoed these sentiments. "We aren't considering a privatisation right now, but we might think about it seriously if our shares continue to trade at these levels." Together with his partners, 39-year-old Grove has 58.5% control of Catcha Media. Other notable shareholders who had invested at the point of the IPO include Genting Group scion Datuk Justin Leong with a 5% stake and Star Publications (M) Bhd with 4.9%. Catcha Media has slumped 15% since listing, although it hit a peak of 90 sen in mid-2011. CIMB Research attributes the underperformance to the myriad media platforms owned by Catcha Media and "Malaysian investors' failure to understand high-growth Internet models", given the lack of such listings on the local bourse. Catcha Media also announced on Tuesday a RM60mil merger between its digital and publishing business and social media marketing website Says.com, creating one of the country's largest digital advertising groups by reach, clients, spend and profitability. Catcha Media will own 70% of the new company and Says Sdn Bhd the balance 30%, implying a RM42mil value for the former's stake. Says.com serves over 80 leading brands, including Nike, Coca-Cola, Unilever, Maxis and Nestle. "The merged entity aims to be a major player in Malaysia's online advertising space by combining Catcha Media's established advertising base with Says.com's social media expertise. "The new entity is not expected to require external funding, as existing operations are already profitable. Both teams at Catcha Media and Says.com intend to expand this business regionally, and the expected profitability of the merged entity should pave the way for an IPO in the next 12 months. "The merger is positive for Catcha Media, as it enables the company to tap Says.com's social media expertise. This is critical for Catcha Media, as consumer trends show social media marketing is a fast-growing media category and advertisers are increasingly turning to social media to reach consumers," CIMB Research explained, adding that Catcha Media could be another Jobstreet in the making. The firm's shares rallied three sen to close higher at 63.5 sen yesterday, with 2.4 million shares being done. |
| Sarawak politically-linked stocks rally Posted: 17 May 2013 05:17 PM PDT PETALING JAYA: Sarawak-based politically-linked companies have rallied strongly, with key stocks making new highs and gaining more than 25% over the past two weeks since the elections. Fund managers have been realigning their portfolios by taking positions in stocks deemed to be obvious beneficiaries over the next five years in the resource-rich state following the strong Barisan Nasional win. Since May 6, the benchmark FBM KLCI has soared 16 points in buoyant trading. Yesterday, the FBM KLCI closed 2.44 points higher at 1,769.16 on volume of 2.11 billion shares. The FBM KLCI touched an all-time high of 1,788.43 on May 14. Cahya Mata Sarawak Bhd (CMSB) was the leader of the pack among the Sarawak-based stocks, which saw gains over the two-week period. It gained 46% over this period to close 31 sen higher at RM5.11, also the counter's all-time high. The stock touched an intraday high of RM5.15. The counter continues to be actively traded, with some 2.83 million shares changing hands yesterday. CMSB's market capitalisation has also ballooned to RM1.7bil due to its rising share price. Analysts said CMSB's earnings outlook remained bright over the long-term, due to the company's being the direct proxy of Sarawak's growth story and in large part being the sole supplier of cement in the state. It also has exposure to the extremely lucrative Sarawak Corridor of Renewable Energy (SCORE) project through its 20% stake in OM Materials Sarawak. Moreover, the company has other businesses linked to the state's development plans including in property, construction materials, quarry and road maintenance. Property developer Naim Holdings Bhd also emerged as another hot favourite, with its share price rising 27.7% over the last two weeks to RM3.37 on volume of 1.13 million shares as of yesterday. Naim recently launched a mixed commercial, residential and leisure project in Bintulu with a gross development value of RM2bil. Naim's 30% associate, Dayang Enterprise Holdings Bhd, has always been a hot favourite among investors and analysts, with many research houses recommending a "buy" on the stock. Dayang's share price has also surged, closing eight sen higher yesterday at RM4.78 on volume of 3.73 million. The stock touched an all-time high of RM4.95 on May 14. Hong Leong Research analysts have revised their forecasts to include RM4bil (from RM2.5bil previously) of contract wins from an estimated RM10bil of offshore hook-up and commissioning construction work for Dayang. This indicates a fair value range of between RM6 and RM9. They like this Miri-based integrated oil and gas service provider due to higher margins, skilled execution and valuation. Infrastructure specialist Hock Seng Lee Bhd has also appreciated 14% over the past two weeks. It closed yesterday up five sen to RM1.83.The company has some 30 projects in-hand worth close to RM2bil, with more than half being outstanding projects. |
| Jala: GST could add up to RM27bil to country’s income Posted: 17 May 2013 04:10 PM PDT KUALA LUMPUR: Malaysia will be able to rake in an additional income of up to RM27bil if the proposed goods and services tax (GST) is implemented at 7%, similar to Singapore's. Minister in the Prime Minister's Department Datuk Seri Idris Jala said the new taxation mechanism could guarantee additional revenue of RM20bil to RM27bil, at maturity. "At maturity is when every Malaysian starts to contribute towards the GST. It must be implemented as soon as Malaysians are ready to accept the mechanism," he added. Speaking at the forum, "GE13 – What it means for Business?" here yesterday, Jala said education on what the GST was all about and how it benefited the country's economy was very important, as well as for Malaysians to understand and accept the taxation mechanism moving forward. He also said GST would provide extra funds for the Government to spend on the well-being of Malaysians, according to what was promised in Barisan Nasional's manifesto before the general election. "Even though a new tax is being introduced, Prime Minister Datuk Seri Najib Tun Razak had committed to reducing corporate as well as personal income taxes. This shows that the Government wants a balance in every move that it makes, whether economically or politically," said Jala, who also heads the Performance Management & Delivery Unit (Pemandu). Meanwhile, he denied claims that the pre-election promises made by the Government will increase the debt to gross domestic product (GDP) ratio, from the current 53%. He said the Government was committed to maintaining its debt at well below the 55% debt to GDP ceiling that it had set before this. Jala also said Malaysia was on track to report a budgetary surplus by 2020. He said that in the past four years with Najib as premier, the country's budget deficit had shown significant decrease year-on-year. "Last year it was 4.5%, and this year we expect it to decrease to 4%. With all the efforts being taken, I am very sure the day will come when we can report a budget surplus." he added. On the Government's role in business, Jala said it would gradually move out of more businesses this year and in the future. Through the Government's Role in Business, he said the Government had already pared down or even phased out its stake in 13 companies, from the 33 entities identified by Pemandu to do so. — Bernama |
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