Jaya Tiasa Q4 Result: Numbers are bad, but not that bad; Better quarters ahead

The plantation sector in general has seen relatively strong performance in the past year compared with many other sectors.

However, Jaya Tiasa remains one of the most laggard plantation counters in Bursa Malaysia among the more established players.

I initially chalked it up to the exiting of one of their major shareholders, Genine Chain Ltd from Hong Kong. After all, I have mentioned a few times that I believe a big issue plaguing companies in Bursa Malaysia is liquidity, and have also demonstrated how mechanical selling can put unreasonable selling pressure on a stock price even when fundamentals remain stable or are improving.

The above is an example of how mechanical selling had pushed COASTAL’s share price way below even its net cash values.

COASTAL had since rebounded over 60% in the subsequent months. Besides COASTAL, I also highlighted similar setups in FPI and PANAMY, both of which had a meaningful bounce after the selling was done.

Nevertheless, Jaya Tiasa’s disappointing results explain why the company remains such a laggard compared to its peers.

Yet, the company remains positively cash generating and debt free. Without further ado, let’s dig into the numbers together.

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