In iCar Asia: receipts fall short on 27 Jul 08 (Spec Buy – $0.67), we said the company looked unlikely to meet revenue targets of $11m–12m for 2016. Judging by the market’s reaction to that announcement we weren’t the only ones to be concerned, but this morning’s warning that it will manage only $6.75m–7.75m is worse than most imagined. The stock has fallen around 17% at the time of writing as a result.
Management blamed weak economic conditions in all its markets (Malaysia, Thailand and Indonesia), for the revenue shortfall, ‘with currency weakness reducing the volume of used car imports’.
2016 revenues 37% below target
Losses to increase