Seni Jaya Corporation, a Grossly Valued OOH Player in Malaysia

Seni Jaya Corporation Berhad (KLSE: SJC), one of Malaysia’s largest out-of-home (OOH) advertising asset owners, is trading at a ridiculously low RM 63.0 million market cap as of March 23, 2025, a valuation that defies its robust fundamentals.

The latest Q2 2024 financials scream growth, yet the market yawns. With over 550 static billboards and a burgeoning digital portfolio, SJC’s performance and dirt-cheap metrics expose a glaring mispricing compared to peers.

In Q2 2024, SJC posted RM 19.2 million in revenue, up 31% from RM 14.6 million a year ago, while profit before tax (PBT) crept to RM 6.3 million from RM 6.1 million, restrained by a prior-year RM 8.2 million property sale windfall.

The real story shines over six months: revenue jumped 45% to RM 36.8 million, PBT soared 47% to RM 9.0 million, and profit after tax hit RM 9.3 million (4.36 sen EPS). Digital billboards, adding RM 7.6 million, drove this surge, capitalizing on Malaysia’s traffic boom. Assets grew to RM 128.5 million, equity to RM 79.6 million (RM 0.38 per share), and cash ballooned to RM 11.2 million, backed by RM 13.0 million in operating cash flow.

Debt? A trifling RM 14.6 million, a 0.18 debt-to-equity ratio. This is a lean, cash-rich growth machine.

At RM 63.0 million, with 213.548 million shares, SJC’s implied price is RM 0.295. Annualize the six-month RM 9.3 million profit, and you get RM 18.6 million, 8.72 sen EPS. That’s a P/E of 3.38, or 4.01-4.59 at RM 0.35-0.40. The price-to-book (P/B) is even more absurd: at RM 80.8 million equity, book value is RM 0.38 per share, yielding a P/B of 0.78—a 22% discount to net assets for a top-tier OOH player.

No dividends this quarter, but who cares when reinvestment fuels such growth?

Compare this to Bursa’s media crowd. Star Media Group (KLSE: STAR) limps at a P/E of 12-15 and P/B of 0.6-0.8, bleeding from print’s decline. Media Prima (KLSE: MEDIA) fares better at P/E 10-13 and P/B 1.0-1.2, but its growth is patchy.

Digital media peers fetch P/E ratios of 12-20, while asset-rich OOH firms command P/Bs of 1.5-2.5. SJC’s P/E is 60-80% below these norms, and its P/B undercuts OOH benchmarks despite superior 45% revenue growth. Low debt adds insult to injury for overvalued rivals.

SJC’s small-cap status and OOH’s unglamorous niche likely keep it ignored. Liquidity’s thin, coverage is nil, and the market shrugs at its digital pivot. But with urban traffic surging and digital ads thriving, this apathy won’t last.

SJC is a glaring anomaly. Its Q2 2024 numbers; 45% revenue growth, 47% PBT rise, crush peers, yet its P/E of 3.38-4.59 and P/B of 0.78 scream undervaluation. As Malaysia’s OOH titan, it’s poised to soar. The market’s asleep; this could triple when it wakes up.

$SJC / 9431 (SENI JAYA CORPORATION BERHAD)