Jason Marine Group

[LLI]

What is the main problem with this company?

[dydx]

FY13 (ended 31Mar13) AR - especially Foo Chew Tuck's Chairman Statement - makes interesting reading.....
http://infopub.sgx.com/FileOpen/Jason%20...leID=18805
http://infopub.sgx.com/FileOpen/Jason%20...leID=18806

The much stronger 2H results - if sustained - are pointing towards a potential strong profit recovery in FY14. The latest (as at 31Mar13) NAV/share at $0.235 and a net cash reserve of close to $0.13/share suggest that this counter with last done (as at 15Jul13) share price at $0.142, is under-priced.

I now look forward to the $0.002/share Final dividend which will be paid on 22Aug13.

[dydx]

Apparently Jason Marine recently had a results briefing for the analysts after releasing its 1H (ended 30Sep13) results.....
http://infopub.sgx.com/FileOpen/JMG_1HFY...eID=265770

Still a grossly under-priced stock counter. No?

[TheMillennium]

CIMB has released an interesting article on this small listed company.

At current prices, it can still be considered a net net stock which should be a favourite of forummers.

[dydx]

With the latest (30Sep13) NAV/share at $0.2418, CIMB's TP for Jason Marine pegged at $0.19 seems very conservative!

Assuming Jason Marine's business volume and profitability continue to improve, I guess it is entirely conceivable that Mr Market may wish to re-rate this well-established business above its NAV/share. Otherwise, founder/controlling shareholder Mr Joseph Foo may wish to privatise the company before selling the entire business to the highest bidder and then retires happily and rich.

[Clement]

I think one of the reasons for the undervaluation is in how Mr Foo derives value from this company.

From the latest annual report, Mr Foo derives at least $500,000 in fees and $274,000 in rentals. The company itself paid $212,000 in dividends.

I am not trying to say anything negative and just sharing the first thing that comes to mind.

[kelvesy]

Wow, this company is rather good in terms of valuations! I couldn't even get my hands on them due to low liquidity.

[dydx]

Jason Marine has been named the "SME Employer of the Year" for outstanding HR management practices at the HRM Awards 2014…..
http://infopub.sgx.com/FileOpen/JMG_Medi...eID=275760

Does looking after employees well lead to higher business growth and more profits over time in a business, thereby also enhancing shareholders' value? IMHO, this should happen.

[dydx]

Jason Marine has revamped its corporate website…..
http://www.jason.com.sg
which is now much nicer and provides more comprehensive info on its recovering business and profitability.

The current positive trend of this business is evident in its 1H (ended 30Sep13) results…..
http://jason.listedcompany.com/newsroom/...45AF.1.pdf [result announcement]
http://jason.listedcompany.com/newsroom/...45AF.2.pdf [press release]
http://jason.listedcompany.com/newsroom/...9528.1.pdf [presentation slides]
, and Mr Market has started to work on the company's share price, which has out-performed the STI by some 25% over the past year…..
http://finance.yahoo.com/q/bc?t=1y&s=5PF...5Esti&ql=1

[dydx]

FY14 (ended 31Mar14) full-year result just out…..
http://infopub.sgx.com/FileOpen/JMG_Resu...eID=298827 [result announcement]
http://infopub.sgx.com/FileOpen/JMG_FY20...eID=298828 [press release]
2H's revenue at $27.6m and NP at $1.75m are significantly higher than 1H's revenue at $22.6m and NP at $1.07m, pointing towards a current positive evolution of Jason Marine's business and profitability. 31Mar14 B/S remained rock-solid, debt-free with a large net cash reserve of $17.06m, with NAV/share at $0.2582, of which $0.161 represented by net cash.

The best news is that the company has declared a total $0.01/share in dividends - comprising a $0.002/share Final and a $0.008/share Special.

Against the latest NAV/share at $0.2582 alone, the last done share price at $0.178 appears grossly under-priced. It does look highly likely that Mr Market would sooner or later want to re-rate this honestly and well-managed business towards its justified fair value, which by rational thinking should be at a decent premium above its latest NAV/share at $0.2582. No?