Why This Small Cap Company is Deeply Undervalued…

Generally, small cap companies would give investors a better risk-reward ratio due to its smaller size nature. Sad to say but the mammoth in Malaysia, such as the banks, are generating extremely low return on investment to investment to date.

I urge investors to start looking on small cap companies.

I stumbled across this article on a website for this company – SENI JAYA BERHAD, and upon seeing how its peers such as STAR MEDIA GROUP, MEDIA PRIMA got featured in the limelight by analyst, I felt like this is a good opportunity for investors to look onto SENI JAYA.

Read in full here: A New Journey Begins (https://marketingmagazine.com.my/a-new-journey-begins/)

Some of the important highlights are handpicked by me to save your time (TL;DR). FYI:

It has been around for over 3 decades, incorporated in 1983 and has more than 30 years of track record and experience in out-of-home (OOH) media.

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This year, SJ has started laying the foundation to begin Phase 1 of its transformation. This includes their major M&A, which begins with the purchase of 40% shares at Noisy Sherbert Sdn. Bhd., a company that owns the proprietary software called ENOMAD, and it has a partnership agreement with a prominent e-hailing company in the region.

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Since May 2021, the new management has started introducing digital-centric products like ENOMAD, the pioneering programmatic digital out-of-home (pDOOH) technology, as well as enhancing product diversity through strategic collaborations. Hence, we decided to undertake an image rebranding exercise to present a rejuvenated SJ group, which better reflects our revamped media solutions.

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Additionally, we also command 200 mobile LED screens that are being installed at the moment and various media formats at Gateway@KLIA2. Our products range from the smallest of street buntings to the largest of spectacular gantries.

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ENOMAD is the next generation of mobile, networked, and intelligent media advertising with an elegant appearance. They help media buyers reach multiple tiers of audiences in a programmatic and personalized manner.

For example, a restaurateur in Bangsar who wishes to promote a lunch package can set parameters such as the time of day to somewhere between 11.00am to 2.00pm and the location to a specific radius from the restaurant.

Now let’s look at the share price comparison.

On a YTD basis, clearly the market has been ignoring SJC’s prospects to recovery. Is this fair for the company?

Clearly not.

This poses a great entry price for investors despite I’m not a technical expert – I mean look at the peer comparison, the gap and margin of safety is huge!