JAT 15.4% 1.5¢ jatcorp limited

JATs Analysis. 36c Fair Valuation.

  1. 2,658 Posts.
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    JAT - JATCORP.
    Health and Wellness Consumer Goods Developer and Manufacturer.


    Key Products:
    Plant Based Meat
    Milk Formulas (Large variety)
    "Superfoods" with antiviral properties (lactoferrin, probiotics)
    Cosmetic Products.

    Current MC - 43M
    Current SP - 3.3c
    SOI: Approx 1.25B.

    Upcoming Announcements:
    Plant Based Meat Deal Details (Due this month)
    Completion / Opening of our "JAT Infant and Maternity Boutique" store in shanghai - First Australian company to achieve this. (due either this month or early March)

    https://hotcopper.com.au/data/attachments/2932/2932642-91cd0b439ac562caa4c19b4de1075029.jpg
    Revenue just down due to coronavirus affecting daigou sales heavily just like A2M, BUB etc but due to our in house brands we are absolutely killing it with profit.

    Last year the directors set out a performance milestone to receive bonus shares which was to make 80m revenue for the year. This did not happen obviously due to Covid & Hong Kong Protests. BUT they believed we would hit 80m revenue and this was with ANMA being half the size it is going to be now and with less revenue streams / deals then we have now (eg the most recent contract from sunnya to sell 32m worth of products within the year.)

    In other words once COVID is over we should smash that 80m revenue milestone easily and be looking more between 100-200m revenue.
    A 100-200m revenue on our current 32.5% margins is 32.5 - 65m Gross PROFIT a year


    SP VALUATION WITH COMPARISON TO A2M / BUB:
    A2M has a 31.7% margin (taken from their investor presentation).
    A2M made revenue of $1.73B in FY20 and had a MC of $13.5B thats 7.8x their revenue.
    If we were to apply that same valuation (even though we have better profit margins) for JAT on 100-200m revenue that would give us an MC of...
    780m - 1.56b MC or an SP of 60c - $1.20 Fair valuation. IF we stayed at 60m Revenue its 36c Fair Valuation.
    BUB made 62m in revenue for FY20 and had a "normalized gross margin" of 24% which is not the same as standard gross margin, its worse.
    They didnt state their MC at the time, their current MC is 355.4M. They are not cash flow positive as their expenditures are out of control.
    FY21 Q2 they lost 5.68m, FY21 Q1 they lost 10.1m! So in my opinion theyre performing far worse than JAT currently is but are worth 8.26x more then JAT!?

    Now we are earning close to the same revenue currently as BUB even though our projected earnings (100-200m imo) are going to fly pass them and while they are losing millions we are gaining millions. SO IF ANYTHING WE SHOULD BE AT LEAST THE SAME MC AS BUB.

    Thats 8.26x current SP... (3.3 x 8.26) = 27.25c

    This comparison alone is a screaming buy to me. The only reason the market has not woken up to JAT is because of the impairments the company has put down over the past 2 years which give the "face effect" of losing money but if you know what an impairment is, you will know that is not the case. We have been profitable for the past 2 years and only long term holders like myself are aware of it.

    Now everyone is beginning to realise these facts and see the comparisons for themselves. Word of mouth is getting out and the interest in JAT is growing day by day.

    Over the past 6 or 7 business days we traded more then our entire share registry.

    Obsidian only have apprx 50m shares left to sell once they convert the last of their notes. Thats the only reason this isnt currently in the10s imo.
    They have been the breaks on this company and its all about to be lifted.

    Now moving on from the valuation side of things here are some recent highlights and whats to come..




    DOUBLING PRODUCTION CAPACITY AT ANMA & STARTING PROBIOTIC RANGE.

    This is where the money will really start rolling in, this is great news for all JAT holders. Our high profit margin products are made here
    and clearly the demand has been enough to justify doubling production capacity... or doubling sales (120m rev).

    Also the introduction for our probiotic range. I expect to see a lot of new products soon which will all probably be at the new store too!

    From wilton himself:
    “Once the upgrade of the production facility is completed, ANMA will be able to produce
    a broader range of products. The probiotics range especially, is expected to be a key
    growth product of ANMA’s. Due to the health function of probiotics, probiotic products
    have become a very widely used health food in people's daily life. The new production
    line for probiotics products will not only increase the sales revenue for ANMA, it will also
    provide great opportunities for JAT to produce additional in-house products within its new
    “health concept range” and increase the company’s market share and influence.”

    https://hotcopper.com.au/data/attachments/2932/2932685-39411f04cfe5a6a4c93866e76833bc86.jpghttps://hotcopper.com.au/data/attachments/2932/2932694-ccb125d3da8c58195a112105a56e9a12.jpg


    COMPETING WITH A2M - JAT PRODUCING A2 PROTEIN FORMULA.
    https://hotcopper.com.au/data/attachments/2932/2932696-12c1de18931228af36766282183a09f8.jpg




    PLANT BASED MEATS STARTING TO KICK OFF.


    https://hotcopper.com.au/data/attachments/2932/2932699-15ccbc248b6045e2f1a78f9a3a0328e5.jpg

    "The agreement represents a change in strategy in that
    JAT’s PBM will be produced by the Shanghai Godly Group in China instead of being
    produced in Australia and being shipped to China. By producing the PBM in China,
    JAT will increase profit margins, reduce costs, avoid delays, mitigate political
    uncertainties and meet China’s strict food hygiene code. Samples of JAT’s PBM
    have been delivered to Shanghai Godley and JAT expects to be able to announce
    the commencement of production and distribution in February 2021
    ."



    JATS NEW WEBSITE IS LIVE.
    https://www.jatcorp.com/

    JATS MATERNITY & INFANT BOUTIQUE STORE (SHANGHAI)
    "JAT believes this is an Australian-first, the first Australian company to sell dairy products through
    its own retail outlet in China. On opening the Boutique, JAT will complete its end-to-end supply and
    delivery chain. It has established its manufacturing facility in Australia, has developed its own
    brands and products, created its distribution network in China and finally, the first of its own retail
    network in a significant location in China."

    Location
    The Boutique is located directly opposite Shanghai Children's Hospital, Shanghai Pregnancy
    School, Shanghai Putuo Maternity & Infant Health Institute and Shanghai Oasis Kindergarten. The
    Boutique will adjoin Sinopharm Pharmacy. The CEO of JAT, Wilton Yao said:
    “I believe this is a perfect site for our first China boutique. The Boutique is in the midst of
    institutions such as the Shanghai Children’s Hospital and has a very high exposure to our
    target markets and demographics.”

    "Shanghai retail store: The fit-out of JAT’s first retail store in China, to be opened in
    Shanghai, has begun and it is expected the store will be open for trading in late
    February or early March 2021.

    The 50sqm store will be branded JAT Maternity & Infant Boutique and located next to the Sinopharm pharmacy, which is expected to
    drive significant consumer traffic to the JAT store. A primary purpose of opening the
    store is to establish JAT's image in the Chinese market, promote JAT's products and
    expand the influence of the Company's products in China. If the Shanghai store is
    successful, JAT intends to open further stores in Shanghai and other cities in China.
    Online China sales platform: The establishment of the Shanghai store will assist
    in driving consumers to JAT’s online China sales platform to be established and
    operated by JAT’s Chinese subsidiary, Hangzhou JAT - see ASX announcement 23
    December 2020)."


    NIGHTINGALE PS PTY LTD (NIGHTINGALE)JAT entered into a 10-year, non-exclusive, sales agreement with Nightingale, focused on
    placing goods with the major supermarket and pharmacy chains in Australia and the UK.
    Nightingale will use its networks to sell the current JAT products, and all future products
    developed by JAT, to its customers in Australia. The next step is intended to be the expansion
    of the JAT sales network to Nightingale’s clients in the UK and to other markets outside of
    China.

    Now.. Ive been made to believe that we / our products are currently in trialing phases (in melbourne) before being rolled out by Majors.
    Majors to me is, Woolworths, Coles and Priceline. This is the kind of exposure we need to really kick it off in Aus.


    Beijing Lulukuan Trading Co., Ltd:
    JAT has entered into a Sales Agency Agreement with Beijing Lulukuan Trading Co., Ltd (Beijing Lulukuan), a Beijing based trading company. Beijing Lulukuan has arranged for the supply of JAT’s products, including Ione Milk and, Moroka into Wumart and Jingkelong Supermarket Chain.
    Wumart Group is one of the biggest retailers in China and the largest
    supermarket chain in the Beijing-Tianjin-Hebei area. With more than 1,000 Wumart
    stores in North, East and North West China, Wumart is opening further stores in the
    north-eastern and southern regions of Beijing. Beijing Jingkelong Supermarket Chain
    is a Chinese supermarket chain headquartered in Chaoyang District, Beijing. It
    operates hundreds of retail outlets, including hypermarkets, supermarkets,
    convenience stores and shopping centres in Beijing and in Langfang, Hebei.


    COSMETICS:
    Interested to see how well these sell. Only just released at the end of 2020.

    https://hotcopper.com.au/data/attachments/2932/2932707-0e809b2a7e482dcfa968ccecf4284e00.jpg


    LANZHOU TRADING AGREEMENT:
    Under the Agreement, JAT will shall source and supply beef and mutton products and LNAHC
    shall use the existing sales channels to promote JAT’s beef and mutton products to the
    northwest of China. With the deepening of cooperation, both parties intend to expand the
    domestic beef and mutton import market and expand the scale of beef and mutton trade by
    building a stable and diversified international trade chain system, expand trade business from
    unilateral import to import and export.
    The Agreement provides that LNAHC plans to purchase 50 x 40’ containers of Australian beef
    and mutton from JAT in the first 12 months of the Agreement. The method of payment by
    LNAHC will be by sight letter of credit.

    The entering of the agreement with LNAHC was possible as a result of the work done by JAT
    over the last year in developing relationships with four abattoirs and meat processing plants
    in order to be able to source product for Chinese buyers. JAT has also employed personnel
    with experience in sourcing and trading meat and other products.







    The list goes on and on and if you go through the announcements you will see how much news & updates we are to expect this year.
    This is the year of the Ox which in cantonese is "JAT" and coincidentally i believe it to be true, look forward to 10bagging with all old and new investors.

    If you made it this far, thank you for reading, please consider giving it a like for the effort and time i put into this and maybe for all of us investors we might be able to get this in the top posts on HC.

    PLEASE FEEL FREE TO SHARE THIS POST OR ANY INFORMATION HERE.
    Last edited by OnlyTheBest: 22/02/21
 
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