Rev Asia posted weaker quarterly  results as the firm is streamlining its businesses  to  focus  on  online  and  social  media.  We  are  ceasing coverage  on  the  stock,  as part  of  a  coverage  rationalisation  exercise. Our most recent  recommendation  was BUY with a TP  of MYR1.68 (SOP valuation cum special dividend).

Weaker quarterly   results.  Rev Asia’s FY14 revenue fell 25.6% YoY as the  firm  is  streamlining  its  publishing  and  e-commerce  business.  The company reported a net loss of MYR2.6m (2013: net profit of MYR2.1m). Associate  losses  widened  to  MYR7.8m  (2013:  MYR6.5m  loss),  mainly from 27%-owned iCar Asia’s loss-making online classifieds business.

Ceasing coverage.  Rev Asia believes the renewed focus  on online and social media will put it in an advantageous position going forward as the online market in ASEAN is still in its infancy. Management is also looking to dispose of the company’s stake in iCar Asia to distribute a substantial portion of the proceeds as dividends to shareholders. Nevertheless, we are ceasing coverage on the stock as part of a coverage  rationalisationexercise.  Our  most  recent  recommendation  was  BUY,  with  a  TP  of MYR1.68 (SOP valuation cum special dividend).

Source: RHB