Seni Jaya Corporation (KLSE: SJC, 9431) major outperformance on their Q3FY22 had impressed us with its RM5.23 million in profit after taxation.

Comparatively, on the corresponding quarter of preceding year, the group had suffered a loss after tax of RM2.38 million.

The improvement of the results was largely due to the ongoing effort of the company’s business transformation plan, as well as our country moving towards endemic, which had increased businesses’ spending on advertising and promotion.

Upon the change of management, the group had embarked on several new initiatives to turn the business around, which includes acquisition of media companies that are on a smaller scale, as well as the venture into the pDOOH – programmatic Digital Out of Home media.

That being said, we felt the need to mention there is a one-off higher other operating income amounted to RM7.30 million in the said quarter, which was largely contributed from the disposal of two blocks of four storey shop-office located in Desa Sri Hartamas.

Nevertheless, the group would still be in the breakeven mode ex all one-off items in the said quarter, which had improved from the corresponding quarter of preciding year, which was in the loss position.

Comparatively to Q2FY22, SJC’s revenue had remained flat comparing RM8.65 million to the current quarter’s RM8.40 million.

Excluding one-off items, the profit after tax change of the group was limited due to the low-base comparison for both the quarters.

It is important to note where SJC had just embarked their transformation journey in mid-2021, and the company had since enlarged their portfolio of OOH assets, from digital billboards, collaboration with e-hailers, as well as mega-sized gantry as their assets.

With consumers growing tired with virtual ads, OOH advertisement space had experienced a “refresh” phase, where more and more attention are dragged to OOH assets.

Nevertheless, we expect better performance for SJC going forward, with potential of higher interest from investors as they had completed the additional issuance of bonus issue for both share and warrants back in 9^th November 2022.