JMART Group has been one of the spotlights for investors, especially in the last few months as the share prices continue to reach an all-time high consecutively, along with projections of a record high in 2021 earnings from the group as well.
Listed companies of JMART Group in the Stock Exchange of Thailand (SET) comprises of Jay Mart Public Company Limited (JMART) as a holding company, JMT Network Services Public Company Limited (JMT) at 52.51%, Singer Thailand Public Company Limited (SINGER) at 32.63% and Jas Asset Public Company Limited (J) at 74.97%.
The group’s performance has said it all in the financial statements last year when JMART and its group made a record high in earnings and revenue. JMART recorded an all-time high of 797.87 million baht in 2021 earnings (+44%). JMT booked an all-time high of 1,047 million baht in 2021 earnings (+53.67%), while SINGER reported a 443.30 million baht (+40.19%) net profit last year, making an all-time high since the takeover from JMART, and J announced 56.44 million baht (+227.95%) of profit in 2021, slightly lower than its all-time high of 58.2 million baht in 2015.
Mr. Adisak Sukumvitaya, Chief Executive Officer of JMART, revealed that the company expected a 50% CAGR in the next five years, while affirming with confidence that JMART’s earnings will continue to make an all-time high this year.
In 2021, the company expected to enter into two new businesses, which are logistics business to connect all retail businesses in the group and Centralized Insurance and Finance Broker, supported by the implementation of technology from J Ventures and TIS Inc.
Mr. Sutthirak Traichira-aporn, Chief Executive Officer of JMT, stated that the company budgeted 6,000-10,000 million baht to purchase non-performing debt for management in 2021, a significant increase from 3,000 million baht in 2020.
The increase in budget was due to the opportunity to purchase more NPL from financial institutions, especially in 2H21, as the economy has yet to return to the normal level, leading to more default.
More importantly, Mr. Traichira-aporn added that a significant increase in this year’s earnings will be contributed by the recognition from its fully-amortized portfolio that booked around 7,000-10,000 million baht from debt collection, while having no management cost and high margin.
Mr. Kittipong Kanokvilairat, Chief Executive Officer of SINGER, stated that the company planned to advance further in hire-purchase contract and car title loans business in 2021. The company projected its loan portfolio to be at 10,000 million baht, a significant increase from 6,604 million baht in 2020.
The business will focus on agricultural and logistic sectors that have limited impact from the economy, affected by the coronavirus outbreak. Meanwhile, SINGER believed that its NPL will be lower than 4% this year, compared to 4.4%, supported by its well management in debt quality and debt collection.
Mr. Suphot Sirikulapas, Chief Executive Officer of J, expected the rental space business to recover outstandingly in 2021, while aiming to launch a new project in 4Q21, including “JAS GREEN VILLAGE – KUBON” with a rental space of 22,350 sqm., which would be the fifth community mall for the company. Currently, 86% of the space has been rented. The business of Senior Care Service will also be launched at “JAS GREEN VILLAGE – KUBON” as well.
Mr. Sirikulapas stated that the company has high expectation in this year’s performance, projecting a J-Curve growth, supported by its assets in the portfolio and the synergy from the group, including JMT and SINGER.
JMART closed at an all-time high of ฿43.50/share, increased ฿4.25/share or 10.83% on March 23, 2021, with a trading value of 2,560 million baht. Among the analysts, KGI Securities gave the highest target price at ฿51.00/share with an “Outperform” rating.
JMT closed at an all-time high of ฿48.00/share, increased ฿2.00/share or 4.35% with a trading value of 1,457 million baht. KGI Securities gave the highest target price at ฿58.00/share with an “Outperform” rating.
SINGER closed at ฿42.00/share, an all-time high in nearly 30 years and a record high since the takeover by JMART, increased ฿4.25/share or 11.26% with a trading value of 695 million baht. Finansia Syrus Securities gave the highest target price at ฿50.00/share with a “BUY” recommendation.
J closed at an all-time high of ฿3.64/share, increased ฿0.26/share or 7.69% with a trading value of 195 million baht.