JWD Infologistics Public Company Limited (SET: JWD) reported continually improved performance in Q2/2022 with the net profit for the quarter of 154.1 million baht, or a growth of 33.4 percent from last year as the revenue from the main business has improved along with the realization from profit sharing from business partnerships. This has helped to boost the overall performance for the first half of the year. The Company is confident of even better second half of the year as the main business is riding on a positive trend while the warehousing and automotive management businesses are looking to return to normal. The Company is also ready to realize profit from the new PACM cold storage joint venture as well as the plan to speed up the completion of the new phase in accordance with the plan to ramp up the investment. At the same time, the Company is ready to cooperate with Central Pattana Public Company Limited in the self-storage business partnership in which the storage area will be increased to 100,000 square meters within 2025.
Dr. Eakapong Tungsrisanguan, Chief Financial Officer of JWD, ASEAN’s recognized expert in logistics and supply chain, revealed that the Company’s Q2/2022 was better than forecast even though it was the low season aggravated by many holidays during the festivity season. The Company’s total income was 1,398.9 million baht, an increase of 9.1 percent over the same period of the previous year, while the net profit was 154.1 million baht, a sizable increase of 33.4 percent due to the satisfactory growth of the main business and the realization, and the increased profit sharing, from joint ventures both domestically and abroad. This is in line with the increase in net profit at the level of 11 percent compared to the same period of last year which was 9 percent.
The businesses that showed good growth in Q2/2022 were the general warehousing business with 126.3 million baht in revenue, or a growth of 28.7 percent over the same period of the previous year as a result of the increased demand for warehousing leading to almost 100 percent capacity of all rentable spaces; The cargo transport business with 305.3 million baht in revenue, or a growth of 50.6 percent as a result of the increased workload in the cross-border cargo transport and the full-quarter revenue realization from the investment in VNS Transport Company Limited; The moving business made a profit of 70 million baht, or a 48.6 percent growth over the same period of the previous year, whereas the business in Cambodia increased its profit to 57.4 million baht, or a growth of 52.7 percent. In addition, the Company realized its share of profit in Transimex Company, a large integrated logistics service provider in Vietnam, that has constantly increased its business, and also realizing a share of profit from the investment in Eastern Sea Laem Chabang Terminal Company Limited (ESCO), the large container port operator at Laem Chabang Deepsea Port, Chonburi Province, and the ICD (inland container depot) facilities providing complete cargo and container handling services in Lad Krabang. Also accountable was an exclusive profit of 59.4 million baht due to the investment together with a new Japanese partner in two minor projects of Alpha Industrial Solution Company Limited, which is an integrated industrial real estate development joint venture.
The overall performance for the first six months of 2022 showed growth according to target with the total revenue amounting to 2,809.3 million baht, an increase of 15.7 percent over the same period of the previous year, and a net profit of 279.7 million baht, an increase of 9.1 percent over the same period of the previous year, as derived from the continuous investment to expand the business along with the increased demand for logistics and supply chain services. In addition, the food service business as invested in CSLF Company of Taiwan showed a turnaround in business performance with continuous monthly profit throughout the first half of this year as a result of the business restructuring plan, the expansion of the representative services and the increase in the effective distribution of products for a leading ice cream brand.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, stated that where the performance in the second half of this year is concerned, the Company is confident that the result will be an improvement over the first half of the year, with the general warehousing business and the cross-border cargo transport showing continuous growth. The moving business is expected to show improved growth over the first half of the year while the industrial estate business in Cambodia is currently in negotiation with the major potential client for which a conclusion is expected soon. The warehousing and automotive management businesses are expected to return to normalcy in the second half of the year after the problems of chip shortage in the automotive industry has been improving. Moreover, the Company has been contracted for increased transport of electric vehicles and automotive spare parts. On the other hand, the cold storage business is beginning to show profit from the new PACM cold storage joint venture. Currently, the rental space is full after only 3-4 months since the launch of the service. This bodes well for the initial profit of the cold storage business that is expected to continue to improve.
The operation plan for the second half of the year calls for the ramping up of the construction of projects that are in the midst of an additional investment outlay. These include the construction of the warehouse project under a joint venture (Alpha Industrial Solution Co., Ltd.), the construction of the cold storage in Saraburi Province and the cold storage facility under the PACT project in the joint venture with Thai Union Group Plc. At the same time, the Company is also in the process of planning for branch expansion together with Central Pattana Plc. (PCN) which is a partner in self-storage business with the initial target to increase the storage floor plan to 100,000 square meters by 2025. The partnership will leverage CPN’s strength in their high potential locations along with a large customer base. The plan also calls for the continued increase in the rental rate at self-storage facilities.
“We set the growth target for this year at 15 percent for which we are confident of achieving. The business situation as of this past July has been according to the goal. Meanwhile, our long-term target is to reach 10 billion baht in revenue by 2025 and to increase the net profit rate to the level of 15 percent,” Mr. Charvanin concluded.