JRSH.
Mkt cap 50M, PSR 0.34, 0.74x book, NCA 53M no debt, 6M FY21 FCF, 13M EBITDA FY21.
JRSH manufactures clothes in Jordan for brands like North Face, Timberland, and Tommy Hilfiger. They have six manufacturing sites which can produce over 14M clothes/year. They have onsite dormitories, and JRSH are tax exempt (expires 2023). Major competitive advantages over peers.
Risks are mostly macro. Apparels demand slowdown, exchange rate risk, etc. But, the only company risk I see is overexpansion. IMO they over expanded in FY21. An extra 650 workers since one year ago and capex for more dormitories leaves them in a weaker position in the future.
Too risky for me, but a very cheap company.
Thoughts? |
