Mr. Adisak Sukhumvitaya, Chief Executive Officer of Jay Mart Public Company Limited (JMART) and Chairman of JMT Network Services Public Company Limited (JMT), stated through “Kaohoon Jor Talad Program” on September 2021, that the business synergy within JMART Group resulted in an outperforming performance for the group even during the Covid-19 crisis.
As for the collaboration with BTS Group, the company will receive more than 10 billion baht from the capital increase by way of private placement from BTS’ subsidiaries, VGI Public Company Limited (VGI) and U City Public Company Limited (U), aiming to invest in JMT, the group will be financially ready for bad debt purchase in a larger amount after the Covid-19 crisis. Mr. Sukhumvitaya expected JMT to step forward as Thailand’s number one among asset management companies (AMC) within one year.
Meanwhile, Singer Thailand Public Company Limited (SINGER) will stand on the funding of nearly 20 billion baht after the subscription of capital increase from BTS Group and the spinoff of SG Capital Company Limited. Mr. Sukhumvitaya expected SINGER to surge as the number one in the business within five years.
High growth potential in both JMT and SINGER from this deal with BTS Group will give an attractive return to JMART, which is the parent company.
To answer the question of why BTS Group decided to invest through JMART not JMT, Mr. Sukhumvitaya stated that BTS Group might see through JMART’s hidden assets, in which the CEO also admitted that there are hidden assets in the group that could be utilized for further growth. Thus, investing in JMART, the parent company, should be more rewarding than picking only one or two businesses.
One of the synergies between BTS Group and JMART Group could be that JMART can utilize the data pool from BTS Group, a mass transit company in Thailand, for its mobile data business and insurance business.
Mr. Sukhumvitaya also mentioned that the synergy between BTS and JFin Coin will be crystalized in six months. Investors could be seeing “Rabbit Coin” in the future.
In addition, Mr. Sukhumvitaya expected 50% growth in JMART for the next three years. The strategic partnership will unlock value creation, through stronger capital and synergy realization, accelerating Jmart Group’s growth up the J curve.
KGI Securities recommended “Speculative Buy” on JMART with a target price at ฿50.00/share, seeing synergy benefit from the partnership with BTS Group. The company’s DE ratio and financial cost will decrease. Meanwhile, the demand for JFIN Coin will spike after the utilization within BTS Group, and both groups can jointly use online channels, including advertisement (VGI) and package delivery (KEX).