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?