JMART Group Expects to Bounce Back in 2H23 as Risks over Debentures Settle

JMART saw its share price dropping 45% this year, weighed by Singer Public Company Limited (SET: SINGER), its subsidiary, on high provisions in the second quarter. The share price fell more than 5% yesterday as rumors in the market raised concerns of the performance in 2H23.

Jmart Group Holding PLC (SET: JMART)’s CEO, Mr.Adisak Sukumvitaya, said the company already paid the total worth of 1 billion baht of its debentures last month. JMART as of now won’t have any near-term debentures to pay at least for a year. This should help JMART to rebound in 2H23 and 2024 as the 2Q23 was the lowest point.


The CEO pointed out that the JMART subsidiaries and its new retail networks are the positive factors that will facilitate the turnaround. JMT Network Services PLC (SET: JMT) and JAS Assets PLC (SET: J) are involved in the new branches expansion strategy during the year-end high season for retails.

Meanwhile, JMT CEO, Mr. Suthirak Traichiraporn said JMT already closed the deal to buy 30 billion baht of debt, which increased its unsecured loan portfolio to 500 billion baht in 3Q23. The CEO targets this year for JMT to have higher operation results than the previous year.


On the other hand, at the end of morning session of 10 October, JMART’s latest price remain unchanged at 22.00 baht, JMT’s latest price was 41.75 baht, dropping by 0.25 baht or 0.6%, and SINGER’s latest price was 11.70 baht, dropping by 0.10 baht or 0.85%.


Finansia Syrus Securities (FSS) analysis noted that JMT default, forced sales rumor and the expectation of 3Q23 low financial results are the pressures that hold down JMT price. However, all the rumors have been cleared and the securities firm recommended buying JMT with a target price at 60 baht.

JMT is estimated to grow its profit by 28%YoY to 2.2 billion baht, benefiting  from the massive debt that it previously bought earlier this year, together with a non-life insurance business that will recover next year. FSS also estimated JMT’s profit to grow at 22% and 23% in 2024 and 2025 as well.