Is iProperty Group Ltd constructing a big future?

iProperty Group Ltd (ASX:IPP) may be building a big future.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Asia-focused online real estate business iProperty Group Ltd (ASX: IPP) today posted another strong quarter of cash collections for the second quarter of 2015, up 48% over the prior corresponding quarter.

The collections were up in every country of operation and at $8.85 million up $1.4 million over the prior quarter, or around 19%. The quarter-on-quarter growth is impressive and the stock has lifted 4 cents or 1.6% to $2.54 this morning.

The group also posted a positive operating cash flow of $0.65 million for the quarter, or $0.78 million when adjusted for what the group says is a one-off hit for new Malaysian GST regulations.

This looks a strong result for a business that is aiming to build market-leading positions in South East Asia and the developed Hong Kong property markets.

Currently the group owns portals that are market leaders in Malaysia, Thailand, Indonesia and the Hong Kong region, with a popular portal in Singapore. Digital advertising and property markets are likely to remain strong into the future with Asian economies developing at 2-3x the growth rates of their Western counterparts.

iProperty's potential is evident if able to translate first-mover advantages into dominant websites that benefit from a network effect of attracting the most buyers and sellers.

The group also has the institutional support of large shareholder REA Group Limited (ASX: REA), which is the dominant real estate website operator in Australia that is majority owned by media giant News Corp (ASX: NWS).

Fast growing and cash flow positive with some big-hitting stakeholders the one issue likely holding back the share price is the market value of around $470 million.

This already reflects some great expectations over the group's potential, although recent signs are encouraging and the business looks an attractive investment at current valuations.

How about two more attractive investments at far better valuations?

Motley Fool contributor Tom Richardson owns shares of iProperty Group Limited. You can find Tom on Twitter @tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »