Jade Road Investments expects more opportunities after pandemic

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How it’s doing 

Jade Road Investments ( formerly known as Adamas)  said its portfolio has remained resilient in the face of the headwinds created by the coronavirus (COVID-19) pandemic, with underlying valuations being mostly unaffected.

In a trading update in November, the Asia-focused small company financier said its estimated net asset value (NAV) on September 30, 2020, was 73p/ 95 US cents (June 30, 2020: 75p/ 95 US cents).

The consolidated unaudited estimated NAV on the same date was US$99.4mln (June 30, 2020: US$100.2mln).

The NAV decrease was impacted by a slight increase in liabilities during the quarter, the firm noted.

In the portfolio update, John Croft, chairman, said: “The Company is confident in the current valuations moving forward mainly because ADAM’s investments are consistently structured with downside protection, as well as their diversified nature, and their location in a region which has learned well from previous outbreaks and is now reopening and recovering.”

In an update of its key investments, Jade Road noted that the final permit for Future Metal Holdings Limited ( 44% of NAV) is expected shortly, while Fook Lam Moon’s restaurant operations in Hong Kong  (28% of NAV) gradually returned to normal during 3Q 2020.

What the boss says: John Croft, chairman (November 2020)

“The Board remains cautious during the COVID-19 pandemic, but it is confident in the outlook for the Company and of delivering value for its shareholders in the longer term.” 

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Inflexion points

  • NAV per share of US$0.93 at end September
  • Coronavrius pandemic is throwing up opportunities
  • Shortage of capital for SMEs in Asia

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