Concentration Risk Buries MJE’s Earnings for FY2025

  • Mayberry Jamaican Equities (MJE) reported an unaudited net loss of US$30.98Mn for the twelve months ended December 2025 (FY2025), down from the US$0.89Mn loss in FY2024. Net fair value declines on its financial instruments totalling US$7.68Mn, and Investments in associates of US$20.66Mn were the primary drivers of the continued weakness in earnings.
  • The declines reflect softer equity market conditions during 2025, particularly in the second half of the year. Notably, Supreme Ventures Limited (SVL), which accounts for 56.3% of MJE’s total portfolio value as at December 2025, declined by 30.1%, contributing to the fair value decline. MJE’s fair value declines were compounded by interest expenses of US$4.19Mn, albeit 25% lower year-on-year. However, this was partly offset by dividend income of US$2.68Mn, which declined by 17.3% year-on-year. Nonetheless, MJE posted a net operating loss of US$29.80Mn.
  • Cost discipline remained a silver lining, as operating expenses declined by 14.9% to US$1.72Mn, reflecting lower professional fees, marketing, and management expenses.
  • However, with its high concentration in SVL, MJE’s earnings and net asset value (NAV) recovery will be heavily reliant on SVL’s share price movements, despite diversification across 25 listed Main and Junior Market companies. SVL’s price may remain subdued in the short-term, amid expectations of weaker earnings for Q4 2025, following Hurricane Melissa, which caused physical damage, disruptions to its off-track betting network and a 2-day lottery shutdown.
  • Ultimately, the medium-term recovery prospects for MJE and its portfolio companies remain linked to an improvement in Jamaica’s equity market conditions. Further monetary policy easing by the Bank of Jamaica, economic recovery post-Melissa and renewed retail and institutional investor participation in the stock market could support valuation recovery across core holdings, though near-term performance is likely to remain sensitive to market sentiment and concentration risk.
  • MJE’s stock price has declined by 16.0% year-to-date, closing at $7.35 on Tuesday. At this price, the stock trades at a P/B of 0.67x, which is below the Main Market Financial Sector Average of 1.1x.

(Sources: MJE Financial Statements, NCBCM Research)