Catcha  Media  (CHM)'s  FY12  results  were  disappointing  with  a  core  net  loss  of RM13.6m,  after  stripping  out  a  one-time  gain  of  RM18.7m  from  the  disposal  of  its subsidiaries in 3QFY12. CHM's operating environment continues to be challenging, as  the  internet  business  in  Malaysia  has  yet  to  be  fully  developed.  Thus,  we  are maintaining  our  NEUTRAL  recommendation  on  CHM,  with  our  FV  lowered  to MYR0.33  based  on  a  9x  FY13f  PE,  reflecting  our  concern  on  the  media  sector  and the group's infancy in its internet business.

Disappointing  quarter.  Catcha Media's FY12 core net loss of RM13.6m was way below our  expectations,  after  stripping  out  a  one-time  gain  of  RM18.7m  from  the  disposal  of  its three  subsidiaries  in  3QFY12,  namely:  (i)  50%-owned  Auto  Discounts,  (ii)  Catcha Lifestyle's Evo Business, and (iii) iCar Asia Ltd. The group's 4Q performance was weaker q-o-q, with topline and core net profit down by 1.8% and  13.6% respectively. Loss before tax from online media (-RM0.12m), e-commerce (-RM7.6m) and online classified (-RM1.3) segments offset the profit before tax from the publishing unit (+RM0.53m). 

Source: OSK