FSS Raises JMT’s TP to Bt52, Expecting Robust Core Profit Growth to Remain til 2023

Finansia Syrus Securities (FSS) expects JMT to maintain its consistency in delivering a remarkable core profit growth in the next two years from strong cash collection, aggressive NPL purchase plan, higher earnings from insurance business and effective cost management.

FSS maintained its “BUY” recommendation, while raising its target price from ฿42.00/share to ฿52.00/share with an estimate 34% 3-year CAGR.


Ms. Yuvanart Suwanumphai, an analyst from Finansia Syrus Securities, expected robust growth to continue for JMT Network Services Public Company Limited (JMT). The analyst stated that after its 2020 net profit surged by 54% YoY, FSS expected the company to deliver remarkable core profit growth at a 34% 3-year 2021-23 CAGR – with an especially large increase of 43% YoY in 2021.

The growth would be driven by 1) strong cash collection from both its existing IRR and fully amortised portfolio; 2) an aggressive non-performing loan (NPL) purchase plan; 3) higher earnings from its insurance business (6% of revenue); and 4) its effective cost management. JMT has effectively managed its service costs by integrating more technology into its debt collection process.

The analyst stated that the reiteration of “BUY” recommendation with a higher GGM-based target price of Bt52 was to reflect its 2021-22 earnings forecast revisions by 12% and 20%. The target price at Bt52 implies a 38.4x 2021E P/E, while believing that  JMT deserves a premium valuation, justified by its solid earnings growth outlook.

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