The share price of Jaymart Group Holdings Public Company Limited (SET: JMART) and two other companies under its group plunged on Monday after reporting disappointing results in the first quarter of 2023.
As of 11:54 BKK time on Monday, JMART fell THB2.00 or 9.85% to THB18.30 per share.
Singer Thailand Public Company Limited (SET: SINGER) plunged THB2.60 or 19.26% to THB10.90 per share.
JMT Network Services Public Company Limited (SET: JMT) dropped THB1.75 or 4.09% to THB41.00 per share.
JMART unexpectedly reported a net loss of 295 million baht in 1Q23 as a result of a loss sharing from SINGER worth 218 million baht due to its 25.2% shareholding stake in the latter and an unrealized loss on other financial assets at the amount of 352 million baht. Without this unrealized loss, JMART would record a net profit of 57 million baht.
Revenue from contracts with customers was equal to 2,244.8 million baht, a decrease of 186.4 million baht or 7.7 percent from the same period of the previous year. It was a result of decreased revenue in the mobile phone distribution business.
On the other hand, interest income from loans for the purchase of receivables and loans and gains from loans for the purchase of receivables which was the income from the part of the financial business both in part of JMT, equal to 969.8 million baht, increased 17.9 or increased by 1.9 percent due to higher non-performing debt collection.
Rental income was equal to 88.1 million baht, increased by 17.4 million baht or 24.6 percent from the same period of the previous year. It resulted from the increased expansion of rental space and the better rental rate in the business part of JAS Asset.
Underwriting income was equal to 74.7 million baht, increased equal to 16.0 million baht or 27.3 percent. In addition, the revenue generated from preparing the consolidated financial statements of subsidiaries in the insurance business has increased sales growth through the Company’s channels and companies in the Jaymart group.
For the reason that caused SINGER to record a net loss was an expected credit loss of the Group Company that increased by 898 million baht or 1,663.0%, due to debtors entering the assistance program for debtors affected by Covid-19 began to gradually end their assistance.
SINGER’s total revenue decreased by 326 million baht or 26.9% mainly due to a decrease in revenue from sales of goods of 492 million baht or 70.8%. However, interest income from hire-purchase and loan contracts increased by 179 million baht or 38.7%.
JMT is the only company in the group reporting results in a positive territory with a 23% increase in earnings. The gain was mainly due to an interest and dividend income and gain on loan from acquisition of debtor from the purchase of non-performing debt to manage in the first quarter of 2023, a total of 981.3 million baht, an increase from the first quarter of 2022 by 30.4 million baht or equal to 3.2 percent as a result of an increase in interest and dividend income as a result of received from cash collection has increased.
The company stated that it acknowledged the situation and will proceed with caution to limit the impact from the issue. The company noted that negative performance will bottom out in 1Q23 and will improve from 2Q23 moving forward.
