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Consensus community valuation
$0.390
Average Intrinsic Value
19.4%
Undervalued by
Active Member Straws
#Management
Added 2 days ago

Patrick Grove is the CEO, Chairman and major shareholder of Catcha Group, who specialise in mergers, acquisitions and the extraction of investment value in high growth, media and technology.  He is a director and co founder of ICQ

 Lucas Elliott has over 20 years of Asian online experience, with a focus on developing fast moving online business models and monetising online assets. Mr Elliott is also a cofounder of Catcha Group, where he is responsible for all aspects of Catcha Group’s corporate finance activities, including mergers and acquisitions, capital raisings and public listings.  He is a director and co-founder of ICQ.

Georg Chmiel is Chairman of ICQ and has over 26 years of experience in the financial services industry, online media and real estate industry. Mr Chmiel was most recently Managing Director and CEO of iProperty Group, the owner of Asia’s No. 1 network of property portal sites and related real estate services. He played a key role in finalising the sale of iProperty Group to REA Group, Southeast Asia’s largest ever internet buyout. Prior to iProperty Group, Mr Chmiel was Managing Director and CEO of LJ Hooker Group

Hamish Stone is CEO of ICQ. He worked at eBay for 10 years across 3 key markets and brands. He led the automotive verticals for the eBay classified businesworked ses of Gumtree.com in the U.K., and Marktplaats.nl in The Netherlands and was the Head of Marketing for eBay Australia and New Zealand based in eBay’s Sydney office.

Syed Khalil Ibrahim is a Director of ICQ and is also currently the Managing Director and controlling shareholder of SISMA Auto (a dealer group representing Jaguar Land Rover and Volvo in Malaysia). He also is also a Director of Jaguar Land Rover (Malaysia), the sole importer and distributor for Jaguar Land Rover in Malaysia.

Peter Everingham is a Director of ICQ.  Up until December 2016, Peter was Managing Director of SEEK Limited's International Division which includes their online businesses in China, Hong Kong and South East Asia. He led the merger of JobStreet and JobsDB in Asia, based out of the Kuala Lumpur Office, and was Chairman of SEEK's China business called Zhaopin. Prior to SEEK, Peter was Director of Strategy for Yahoo! in Australia and South East Asia which included investing in Australia's leading online car classifieds business, carsales.com.au

 All of the directors have skin in the game.  Notable shareholders are Carsales.com (12%), Catcha Group (28%), PM Capital (9%)  All these companies have a relationship with the directors, so there is definate alignment.

All of the management have long and short term incentives which is a good thing for shareholders.  They are not on the boards of countless other companies which indicates that this is not a side-project for them.

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#History
Added 2 days ago

ICQ was founded and spun out of Catcha Group, which "like to bet on ideas where the concept is already proven. Our only risk is execution risk, we don’t like to bet on idea risk.” The group looked at Car Sales and copied and pasted it into South East Asia.  

They operate in 3 countries... Malaysia (where they are headquartered) and Thailand.  Both countries are cashflow positive.

Indonesia is the 3rd country and it is not Cashflow positive yet.

From my model I believe that they will be profitable as a group in 2021/2022.  

ICQ do not have the market to themselves in these countries, like Carsales did in Australia.  However, their brands are the number 1 in all 3 countries.... Indonesia less so.

These countries are likely going to benefit from the trade war, as well as from China's Great Road project where they basically own the world.  This should increase the wealth of the middle class and ultimately car ownership...  

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#Trading Updates
Last edited 3 weeks ago

14-May-2020:  iCar Asia Trading Update

Headlines:

  • Unaudited revenue year to date until April 2020 reached A$4.3m, an increase of 18% YoY despite COVID-19
  • Net Operating Cash Flow improved substantially in April 2020, with an outflow of only A$0.4m resulting from effective cost control and revenue enhancement measures
  • Q2 2020 outlook improving with the Group’s two largest markets by revenue, Malaysia and Thailand, relaxing movement and business restrictions from the beginning of May 2020

Click on the link for more.

ICQ up +6% on that update so far today.  I used to hold them, but not currently.  ICQ is 28.66% owned by its parent company, Patrick Grove's Catcha Group, and Catcha Group's investors include News Corporation, REA Group, Star Media Group (Malaysia), Intel Capital, Carsales.com Limited, Australian Foundation Investment Company, BlackRock, Goldman Sachs, Credit Suisse, Fidelity Funds Management, and Sky PLC. 

As well as Catcha Group being ICQ's largest shareholder (28.66%), ICQ also has Paul Moore's PM Capital (8.58%) and carsales.com (ASX: CAR) (13.16%) on their register.

Still waiting for that inflection point - where they become profitable and cashflow positive on a sustainable basis.

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#Company Presentations
Last edited 8 months ago

08-Apr-19:  On March 11th (1 month ago), iCarAsia (ICQ) presented their 2018 Full Year Results and the presentation accompanying those results can be viewed here.

They are now operating profitably in Malaysia and Thailand, and they have a clear path to profitability in Indonesia, with their monetisation strategy progressing well, losses decreasing, their cost base remaining flat, and they are forecasting positive monthly EBITDA by the end of this current calendar year (2019) and that they will be cashflow positive in early 2020.  After years of an SP that drifted steadily SE as more and more shareholders went from being believers to being disillusioned / bored / impatient / uninterested... we are now witnessing the sort of progress and inflection point (move from being unprofitable to being profitable) that perhaps had been expected a few years before this.  Better late than never.  I don't think we can reasonably expect the sort of growth trajectory that we saw with CAR (Carsales.Com) in prior years, but we will see significant growth.  Remember:  CAR still own 13.3% of ICQ.  Paul Moore's PM Capital also own 7.74% of ICQ.  

I don't currently own any ICQ or CAR, but I have ICQ on my watchlist, and may buy some soon, or some time this calendar year.

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