iSentric (ASX:ICU) is a diversified digital services company that focuses on the high growth internet industry in Southeast Asia. ICU specialises in three complementary areas: digital media, mobile payments and enterprise mobility.
By combining the three areas, ICU has created a vertically integrated company that can generate gross margins in excess of 90%. ICU is already profitable and has provided FY16 EBITDA guidance of $3.1m. We will be looking for further growth in FY17 to come from market expansion, new products, and acquisitions.
iSentric is valued at ~$1.63 per active user, a 96% discount to global peers. This is despite having already effectively monetised their user base and operating in a very high growth market. Our model generates a valuation of $0.34 per share.