Mr. Santipol Jenwattanaphaisarn, Vice Chairman and CEO of Thai parking service provider Jenkongklai PCL (mai: JPARK) said, JPARK still has a 150 million baht worth of total backlog, which will be realized though Q3 of 2023 to Q2 of 2024. JPARK planned to expand an additional 2,000 to 3,000 parking slots in the final quarter of this year, which will help adding up to its target of 50,000 by 2025 from the current 30,000 slots.
JPARK stated earlier that it will invest 300 million baht from its IPO proceeds on the 30-year-leased Pranangklao Hospital parking building, which has 6-floor and a total usage area of 18,242 square meters that could slot 532 cars and 72 motorbike parking at the same time. The building has 2,049 square meters of commercial area, which averages a rent fee of around 1,000 baht per square meter. The company expected to start the operation around July to August of 2024, which will significantly increase JPARK revenue. And JPARK also planned to launch its parking apps to expand its franchise service as well.
The CEO mentioned before that the second half of 2023 earnings will be great, as the company will grow from Thailand recovery from the pandemic. The travel demand from both domestic and foreign tourists would spike back to normal which is positive to JPARK as the company has almost 30,000 parking slots near the central business district around Bangkok. Earnings in the second half of 2023 will be supported by the increase of the realized revenue from its backlog of continuous expansion, installation and management services.
Finansia Syrus Securities expected JPARK Q3 net profit at 21 million baht, a 19% QoQ increase from 24% growth in revenue, following its advisory service, installation, and the parking lot around Ladkrabang Hospital.
If 3Q23 earnings are in line with estimates, it should account for 76% of FSS’ total forecast for 2023 at 64 million baht, representing a 16% increase. Meanwhile, net profit in 2024 is expected to come in at 102 million baht.
In addition, FSS recommended “BUY” JPARK at a target price of THB6.40 per share.
