JMT Network Services Public Company Limited (SET: JMT) outpaced the SET Index by 38% in the last three months in response to optimism that the company would be included to the SET50 Index and MSCI, with KTBST Securities retaining a “BUY” rating and raising a target price to THB95.00.
KTBST expected JMT’s 1Q22E net profit to surge +46% YoY but decline -14% QoQ to THB413 million. An increase YoY may contribute to a larger size of the bad debt management portfolio and the higher value of debt debt collection service since the moratorium loan program came to an end. A reduction QoQ may be due to a high base in 4Q21, a period the company reversed loan-loss provision surplus.
KTBST also maintained JMT’s 2022E net profit forecast of THB2.3 billion, which indicates a strong +63% increase YoY, but upgrade 2023E forecast by 8% to THB3.2 billion, up +42% YoY, as KTBST raised cash collection assumption given effective management and cut loan-loss provision forecast to reflect the greater value of bad debts that have been fully amortized.
JMT shares finished marginally higher on Wednesday (April 27), up THB0.75/share, or 0.88%, to THB86.00/share, with a trading volume of THB654 million.
