JMT Network Services PCL (SET: JMT)’s Executive Director and CEO, Mr. Piya Pong-acha and Mr. Sutthirak Trichira-aporn, told Bualuang Securities (BLS) through Virtual Conference that JMT’s unsecured debt management business is still strong though the second half of 2023, after the company purchased 4.1 billion baht of debt during the first half of 2023, a 268% YoY increase.
In Q3 of 2023, JMT started to cash in from new debt from a total portfolio of 370 billion baht, a 50% increase compared to last year. However, BLS viewed that the tightening lending policy amid rising interest rates was affecting the bank refinancing, which caused a delay to JMT cashflow, which will have some impact to JMT’s cash collection in the second half of this year. Still, BLS expected better performance next year.
BLS estimated JMT’s Q3 net profit at 490 million baht, a 7% YoY increase, from 1.5 billion baht of cash collection, a 9% YoY increase with a total debt for management at 400 billion baht, a 60% YoY increase.
As for Q4, BLS estimated JMT’s net profit at 587 million baht, a 20% YoY increase, from 1.6 billion baht of cash collection, which is a 23% YoY increase and 61% YoY growth on total debt for management.
BLS adjusted JMT’s net profit to 2.1 billion baht, a 19% YoY increase, from the 6% YoY reduction in cash collection and the increase of expected loss reserve from 0.9% to 1.2%. BLS also adjusted JMT’s 2024 net profit down by 9% to 2.5 billion baht, but is still a 20% YoY increase.
As for JMT share price, it has dropped 32% since the start of October. JMT’s P/E ratio remained at 19 times, lower than the 10-year average. BLS expected JMT’s P/E growth in 2023 to 2024 at 19%, which is below the 2019 to 2022 average as well. Nevertheless, BLS still recommends “BUY” JMT with a 38 baht target price in 2024.
