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Innity, an MSC-status company, is a leading online advertising solutions provider in the country. A pioneer in the industry, Innity provides online advertising and marketing solutions based on its in-house interactive technology platform. The Group was established in 1999, and has one of the most comprehensive and largest online advertising networks in SEA, spanning over 200 toprated websites. To date, Innity has served more than 190 advertisers, executed over 800 advertising campaigns for local and global clientele for various sectors.
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| Innity Online Advertising Solutions |
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Full consultation services in terms of running
online advertising campaigns. |
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Interactive digital media that exhibits dynamic motion such as video, audio, and animation. |
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Simpler functional ads with limited extent of images and animations. |
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Less technology intensive online advertising such as static banners and non-interactive ads. |
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This service complements Innity’s online ad hosting and delivery services. |
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Website design and maintenance services, as well as design and implementation of e-commerce |
| RM 'mil |
FY06 |
FY07 |
%Chg |
FY08f |
| Revenue |
8.95 |
9.30 |
69.4 |
15.75 |
| Gross Profit |
2.61 |
4.49 |
65.0 |
7.40 |
| EBITDA |
1.53 |
2.95 |
75.0 |
5.10 |
| PBT |
1.36 |
2.57 |
83.7 |
4.72 |
| PATMI |
1.43 |
2.51 |
78.6 |
4.49 |
| Gross Margin |
29.2% |
48.3% |
-1.3pts |
47.0% |
| PBT Margin |
15.2% |
27.6% |
2.4pts |
30.0% |
| EPS^ |
1.13 |
2.00 |
78.5 |
3.57 |
| ROE (Average) |
>50% |
>50% |
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35.6% |
Group revenue grew at 63.4% p.a. for period FY04-FY07, in line with industry growth. The slower pace in FY07 was due to FY06’s significant contribution from ad-hoc project with Malaysia Tourism Board for Visit Malaysia 2007 campaign. Overall, FY07 saw growing demand in the local market, as well as contribution from Singapore in 2H07. The Group’s profit margins improved all-round due to
increased demand for higher margin services, such as AdVenue Rich Media, Online Ad Production and Online Content Creation.
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| Business Strategies & Prospects |
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Innity has a two-pronged growth plan:
Increase in Service Offerings
To undertake R&D projects to increase service offerings that include, AdVenue Video IPTV/Digital TV Advertising and AdVenue Mobile Interactive. |
Market Expansion
To widen its market reach by setting up more sales offices in the region; e.g. Thailand and Philippines in 2008, and India and Hong Kong in 2009.
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| Among the first mover in online advertising in SEA countries. |
Online advertising in M’sia accounts for 0.5% of total ADEX vs 5-10% in developed countries; local market expected to grow faster than total ADEX at 53% p.a. to RM269.5 mil in 2012.
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Increasing overseas sales going forward; Overseas contribution from Singapore and Vietnam to account for >15% of FY08 sales.
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Excellent fundamental and strong earnings growth – High ROE of >30%, and earnings growth expected to be in tandem with the double-digit rate of industry.
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Single digit FY08 PE for a double digit growth story.
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Issue Price: RM0.55 (or Ex-bonus Price: RM0.29)
Share Cap (after 9-for-10 Bonus):
RM12.58 million (125.8 mil RM0.10 shares) |
| Market Capitalization (RM’mil) |
36.4 |
| Historical PE Ratio (FY07) |
14.3x |
| Current Year PE Ratio (FY08) |
8.1x |
| PEG |
0.11 |
| Major Shareholders (after IPO & Bonus Issue) |
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| Founders / Promoters* |
60.49% |
| Lee Chel Chan |
7.89% |
| Thamelise Capital LLC |
5.95% |
| Public |
25.67% |
*56.62 million shares under moratorium within 1st year of listing
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