Finansia Syrus Securities (FSS) rated JWD InfoLogistics Public Company Limited (SET: JWD) as BUY while rolling over to 2023 target price of Bt24-26 from previously Bt23 per share.
An upward revision on target price came after JWD and SCGL (a subsidiary of The Siam Cement Public Company Limited) announced that they will merge to become SCGJWD. JWD will increase its capital by 791 million shares at Bt24.02 apiece for a share swap with SCGL’s shareholders. The transaction should complete by 1Q23.
The SCC group and JWD’s shareholders will have 42.9% and 31.8% ownership in SCGJWD, which will become ASEAN’s largest logistics and supply chain provider. It will have business in over eight countries. Since their business complements each other, SCGJWD would benefit from economies of scale.
FSS stated that its initial estimate shows that SCGJWD would record 90% higher profit than JWD. It would fully offset the dilution from the capital increase. JWD has support at Bt20.70-20.50 and resistance at Bt21.6//22.
