Mayberry Jamaican Equities (MJE) Reports Reduced Losses

  • Mayberry Jamaican Equities (MJE) experienced reduced losses of J$256.28Mn for the 9 months ending September 2024 (9M 2024), a significant improvement from the J$2.14Bn net loss for 9M 2023. The reduced losses were primarily driven by a J$1.55Bn increase in net trading gains, largely due to the sale of MJE’s 20% stake in Caribbean Producers Jamaica Limited (CPJ).
  • MJE also benefitted from a 29.1% (or J$643.73Mn) growth in unrealised gains on fair value through profit and loss (FVTPL) investments, reflecting improvements in the performance of the local stock market.
  • Against this background, operating loss improved to J$115.40Mn, compared to the loss of J$1.98Bn for 9M 2023. There was also an 11.3% reduction in operating expenses, which fell to J$140.88Mn, primarily due to lower legal and professional fees.
  • Overall, MJE’s performance is likely to improve in the near to medium term as the BOJ’s monetary policy easing sets the foundation for improved stock market performance. Falling interest rates and improved market liquidity are expected to boost retail and institutional investor sentiment and demand for stocks, drive stock valuations upwards and stimulate market activity, which should augur well for MJE’s portfolio.
  • Mayberry holds equities in 41 companies listed on the Main and Junior Markets. However, with a 55.9% exposure to Supreme Venture Limited (SVL), there is a significant concentration risk. As such, the portfolio’s performance is heavily influenced by SVL’s share price movements.
  • MJE’s stock price has increased by 2.4% since the start of the calendar year, closing Friday’s trading session at $10.19. At this price, the stock trades at a P/B of 0.7x, which is below the Main Market Financial Sector Average of 1.1x. MJE’s share price also trades at a discount to its Net Asset Value (NAV) per share of $13.12, suggesting that the stock is undervalued.
  • This discount is a long-standing characteristic for other listed funds in MJE’s peer group, which can significantly affect investors' ability to realise the true value of their investments.

(Sources: MJE Financials & NCBCM Research)