JcbNext Berhad (formerly known as JobStreet Corporation Berhad), was previously involved in internet portal business in Malaysia. The management, led by Mark Chang, has a very good reputation for the way they run the company, with integrity.

In 2014, a strategic decision was made to sell JobStreet.com online job portal business to SEEK Ltd at a valuation of RM1.89 billion. The sale allowed the JCBNext Group to immediately unlock substantial value in the business consistent with the Company’s intent of maximizing returns to shareholders, via the payment of the special dividend of RM2.65 per share on 24 December 2014.

Upon completion of the corporate exercise, it was left with cash of RM189.49 mil (comprises RM135.93 mil cash and RM53.57 mil other investments) and RM94.54 mil investment in associates. It had no borrowings.

Based on 140 mil shares outstanding, net cash and investment in associates are equivalent to RM2.03 per share.

http://www.jcbnext.com/?page_id=4 

Fast forward to today.

Today, JcbNext’s most prized asset is 104 Corporation, the largest job site in Taiwan listed on Taiwan stock exchange.

JcbNext is the largest shareholder of 104 Corp with shareholding of 23.03%. Share of dividend from 104 Corp was NT$61 mil or RM7.4 mil last year.

At yesterday’s closing price of NT$136, the stake in 104 Corp is worth NT$1.04 bil or RM145 mil.

In other words, about half of its assets are invested in 104 Corp, which had captured over 90% of the online recruitment advertising market share in Taiwan. 

Source: Company annual report

Statement of financial position

Let’s look at JcbNext’s latest financial position.

What is the net worth of JcbNext?

Based on latest financial results, JcbNext had total assets of RM321.53 mil but its investments are undervalued/stated at book value.

Adjusting for the market value of RM305.22 mil (highlighted above), total assets is RM360.68 mil.

JcbNext had total liabilities of RM2.25 mil. As such, its net worth is RM358.43 mil.

Based on 140 mil shares outstanding, JcbNext is worth RM2.56 per share.

At current price of RM1.65, JcbNext is undervalued by a huge margin.

Even an orang utan could figure JcbNext is worth 55% more, just simple algebra.