JMT Network Services Public Company Limited (SET: JMT) chief executive officer Sutthirak Traichira-aporn announced that the company has inked a deal to purchase unsecured loans from a certain commercial bank worth 60,000 million baht, adding to its existing portfolio of around 440,000 million baht when combined with JK AMC, a JV with KBANK.
Mr. Sutthirak expected that the purchase of bad loans would contribute to the profit target of 30% growth this year.
Daol Securities stated that revenue recognition for AMC nowadays is faster than what it was 5-6 years ago. The company could see profits as soon as it bought these bad loans.
According to the speculation of DOAL, Thai financial institutions are expected to sell more bad loans in the second half of this year due to the expiration of support measures during the Covid outbreak.
In addition, DOAL noted that the current share price of JMT has priced in recent negative factors, while having a potential to continue to recover. DOAL gave a “BUY” rating with a target price at THB54.00 per share.
Meanwhile, Kiatnakin Phatra Securities (KKPS) also sees growth potential in JMT, expecting EPS for 2023-24 to grow 25%. The brokerage company rated “BUY” on JMT with a target price as high as THB81.00 per share.
