Shares in JMART Group jumped in early Tuesday trading as investors anticipated the group’s entry in the SET50 Index.
The share price of Jay Mart Public Company Limited (SET: JMART) rose THB3.00/share or 5.39% to THB59.00/share, with a trading value of THB1,262 million.
The share price of JMT Network Services Public Company Limited (SET: JMT) rose THB4.50/share or 6.47% to THB74.00/share, with a trading value of THB1,550 million.
The share price of Singer Thailand Public Company Limited (SET: SINGER) rose THB2.00/share or 3.74% to THB55.50/share, with a trading value of THB554 million.
Maybank Securities (Thailand) (MST) maintains a “BUY” rating on JMART with a target price of THB75.00 per share, citing that in the short-term, the share price will be driven by the opportunity to be included in the SET50 index in mid-2022. But in the longer term, MST focus on subsidiaries’ growth will be a boost to normalised earnings growth in 2022-23 at THB2.082 billion and THB2.989 billion (+68 YoY / +44%YoY), or average (CAGR) of 42% pa over the next 3 years.
In 2022, the subsidiary’s outlook keeps growing. (i) JMT grows on strong cash collection and further NPL portfolio expansion through JV x KBANK in mid-2022; (ii) SINGER, double franchise growth and title loan expansion +47%YoY; (iii) Mobile rises +68%, increase in IT, IoTs, Café products, expand new branches to increase efficiency; (iv) KBJ jumps +100%, accelerates debtor base and loans by +50% YoY; (v) J realizes full-year profit from JAS Kubon and starts senior housing project (Senera); (v) JVC seeks digital transformation customers, estimated 1Q22 normalised profit of about THB400 million, flat QoQ, +20%YoY, prior to soaring in the rest of the year.