Sunday 22 June 2014

Good to be Seni Jaya Corporation minority shareholders?

As of 31 March 2014, Seni Jaya Corporation Berhad (SJC) has short term placements of RM27.4m and cash of RM4.8m (total RM32.2m).

I am not very sure of the total value of its properties held by the group but I am not surprised if the value is above RM20m.

These 3 assets alone could possibly worth RM52.2m or more, before including its business.

At 93sen/share, its market cap is RM37.7m.

According to 2013 annual report, 2 of its executive director, Dato' Blace Teo @ Teo Swee Cheng and Datuk Anne Teo each received total salary of RM2m (RM1m each)  in 2013.

The group's revenue was RM27.0m and RM26.3m in 2013 and 2012 respectively.

Net profit was RM3.1m and RM3.6m in 2013 and 2012 respectively.

EPS 7.76sen/share and 8.9sen/share in 2013 and 2012 respectively

It looks cheap at first glance. But after comparing the executive directors' remuneration against SJC's revenue, net profit and market cap, I give it a pass.

It had been paying dividend of 5sen/share since 2008 but the amount was slashed to 2sen/share in 2013 despite the large cash pile. Why?

(In comparison, the highest paid executive director in Media Prima, the biggest integrated media player in Malaysia was RM1.8m-RM1.85m. Media Prima recorded revenue and net profit of RM1.7b and PATAMI of RM214.1m in 2013.)

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