Seni Jaya Corporation Berhad - Initiation
Fri, 28-Feb-2025 07:31 am
by Team Coverage • Apex Research

Counter

SJC (9431)

Target Price (RM)

0.500

Recommendation

Buy

Investment Highlights

Reputable OOH advertising player. SJC’s position as the second largest OOH advertising player in Malaysia and their well-established presence with c.40 years of track record has developed a solid reputation for reliability and business acumen in the respective industry. Their billboards are well within nationwide reach located along major highways, train stations, airports, etc enables mass market penetration.

 

Expansions underway. SJC intends to spend RM10.0m across eight key projects in 2025 in bid to beef up their presence in the OOH advertising industry in Malaysia. This allows the group to raise brand visibility and recognition, while potentially enlarging customer base. We reckon that the move will cement the group position as one of the leading advertising companies in Malaysia will be earnings accretive over the long run.

 

Leveraging onto solid DOOH industry outlook. The traditional out-of-home advertising industry has been transitioning into digital formats. Digital screens provide the flexibility to display dynamic and interactive content, including videos, animations, and real-time updates. This captivates viewers' attention and creates a more engaging advertising experience. In addition, the deployment of DOOH is accompanied by the revolution of digital infrastructure and increasing sustainability through usage of LED displays.

 

Initiation Coverage. We initiate coverage on Seni Jaya Corporation Berhad with a BUY recommendation and a target price of RM0.50 based on assigned P/E multiple 8.0x to FY26F EPS of 6.4 sen and three-star ESG rating. The ascribed P/E multiple represents -1.0 SD of 1-year historical mean average to reflect the Group’s smaller market capitalisation against Bursa Malaysia Telecommunication & Media sector.

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