Highlights

Felicity Investing

Author: Felicity75   |   Latest post: Fri, 9 Oct 2020, 4:27 AM

 

Probably the most undervalued stock on Bursa Stock Exchange. A takeover target? - Felicity Investing

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1) Cash-rich JCBNext trades at  mindblowing 53% discount to its net asset value! Market price RM1.38 and there is RM 2.93 of net assets where majority are in cash and investments in liquid assets. Put another way, you are paying only for its investment in associates 104 Corp ( Jobstreet of Taiwan) and Innity Berhad (refer Appendix). You get the rest for free - cash and cash equivalent, liquid assets and investment property worth RM 1.50 per share. What a bargain.

 

Cash and Cash equivalents: RM 95 million 

+ Investment in associates and other long term investments (fair value): RM 280 million

+ Investment properties: RM 19 million 

+ Other assets: RM 2 million

- Total liabilities: RM 2 million 

= Net assets: RM 404 million 

/ Shares outstanding: 135 million

Net assets per share: RM 2.93

 

2) Insider buying and share buybacks. Independent Director and former major shareholder of Jobstreet.com Lim Chao Li has been accumulating shares lately. JCBNext also buying back shares aggressively.  JCBNext has good track record in share buybacks and cancellations which really create value for shareholders. The management had indicated share buybacks as a way to return value to shareholders. Jcbnext had cancelled more than 2 million shares and expect more cancellation as it aggressively buying back shares. 

 

 

 

3) Proposal to venture into healthcare services. At its 13th AGM, Management had indicated they are looking into the healthcare services as a potential investment. There are also proposal to venture into retirement homes. With RM 95 million cash and RM 48 million short term investment, JCBNext can put cash to work immediately.

 

 

Source; 13th AGM Summary of Key Matters - JcbNext Berhad 

 

——

Appendix

 

Company Overview

JcbNext Berhad is an investment holding company. It owned and operated the JobStreet.com online job portal business from 2004 to 2014. In 2014, the job portal business was sold to SEEK Ltd for close to RM2 billion with the net proceeds paid as dividends to shareholders.

 

JcbNext Berhad has stakes in associates, 104 Corporation, the largest job site in Taiwan and Innity Corporation Berhad, a leading provider of interactive online marketing platforms and technologies in Malaysia. It also has a majority stake in a small consultancy business in Japan and operates the Autoworld automotive classifieds and stake in a small consultancy business in Japan and operates the Autoworld automotive classifieds and content website. JcbNext also has quoted investments in Malaysia, Hong Kong and Singapore and owns a 8-storey office building in Kuala Lumpur and a 2-storey shoplot office in Johor.

 

Total market value of JCBNext equity portfolio had nearly doubled to RM 227 million in 2019 vs cost of RM 118 million.

 

 

JCBNext paid special dividend of RM 2.65 per share after the job portal business Jobstreet.com was sold to SEEK Ltd. today it’s investment portfolio is worth RM 280 million. Should the company decides to liquidate the portfolio, shareholders may expect a special dividend of RM 2.08 per share.

 

 
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Sslee Thank god. Now Insas is no more the most undervalued stock in Bursa.
20/09/2020 9:37 AM
CharlesT Pirated version of Felicity???
20/09/2020 10:30 AM
stockraider Jcb a Much better choice than icap loh...at least u get a decent dividend mah....!!
20/09/2020 1:50 PM
speakup never heard of value trap?
21/09/2020 3:55 PM
Philip ( buy what you understand) Wow!!!! Must buy stock!!!
22/09/2020 6:12 PM


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