My Day to Day Analysis

10 things I learnt from Seni Jaya Corporation Annual Report

Publish date: Tue, 21 Jun 2022, 08:05 PM

10 things I learnt from Seni Jaya Corporation Annual Report

1. A new management team had onboarded SJC back in May 2021, and they had a 3-years transformation plan in place, including boosting their out-of-home (“OOH”) advertising space, expanding the numbers of OOH advertising assets, as well as enhancing the group’s digital OOH (“DOOH”) segment.

2. On a side note, SJC had collaborated with the largest e-hailer in Malaysia, which is most likely Grab for a programmatic DOOH (“pDOOH”) development under ENOMAD for customizable and location sensitive advertisement, and they had also secured the soon-to-be-listed Carsome as one of their key clients.

3. The company also invested in 3 additional LED billboards to cater the growing needs of OOH in 2021, which resulted to a combined portfolio of 15 LED billboards under the umbrella of SJC.

4. In line with the change of key management team, SJC had been reporting two consecutive profitable quarters as a result of their enhanced OOH, DOOH and pDOOH advertising efforts, with the help of three 55% owned new OOH firm that the company had invested.

5. But for Andaman Group who owns mega billboards that are considered as “premium” in the OOH media industry, this will further enhance SJC’s portfolio and command a pricing premium for their advertising services rendered for their clients.

6. In 2021, a 1-for-2 bonus issue of warrants and a 3-for-1 bonus issue of shares was proposed to reward shareholders.

7. The leading global media investment and intelligence company – MAGNA is expecting the global advertising market to grow at a 12% rate in 2022 to USD795 billion, and MAGNA also expects the same growth rate to apply for the Malaysia market.

8. For financial year 2021, SJC had reported a loss after tax and non-controlling interest of RM17.2 million due to RM11.4 million allowance of impairment loss on amount owing by associates, where the associates’ operation was affected by the pandemic, and this had temporarily impaired the bottom line of the company.

9. The net assets per share stood at RM0.95 at the end of financial year 2021 with RM9.6 million worth of cash in their war chest prepared for acquisition of OOH and potential M&As.

10. The management is upbeat on their performance in financial year 2022.

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