Jay Mart Pcl. (SET: JMART) shares rose 7% on Wednesday, a day after the company announced the acquisition of Thailand’s fast-growing restaurant franchise “Suki Teenoi.”
As of 11.04 A.M. (Thai time), the share price of JMART rose THB3.00/share, or 6.82%, to THB47.00/share, with a trading value of THB346 million.
JMART announced on Tuesday a THB1,200 million investment in BNN Restaurant Group Company Limited (BNN), which runs restaurant businesses under the name “Suki Teenoi,” in the amount of 352,941 shares, representing 30% of the total voting shares.
The acquisition of BNN for “Suki Teenoi” business was in line with the report in early October as the company signaled for a 70% profit growth this year.
According to ASL Securities, JMART is expected to maintain its momentum throughout the second half of the year, mostly backed by the mobile and IT businesses, after Thailand lifted all lockdowns, allowing shopping centers to resume normal operations, and the peak shopping season is arriving. Meanwhile, JMT’s revenue continues to rise in tandem with the increase of the NPL portfolio, and JMART has begun to realize revenue from JV AMC with KBANK. SINGER’s loan portfolio is also growing in line with the THB15 million target, and revenue from JGS under the JV with GUNKUL is beginning to be recognized.