On Tuesday at 11:46 AM (Bangkok time), the share price of Jaymart Group Holdings Public Company Limited (SET: JMART) soared by 25.27% or THB 2.30 to THB 11.40, with a trading value of THB 270.83 million.
JMT Network Services Public Company Limited (SET: JMT) increased by 22.22% or THB 2.20 to THB 12.10, with a trading value of THB 470.07 million.
Singer Thailand Public Company Limited (SET: SINGER) jumped by 13.08% or THB 0.85 to THB 7.35, with a trading value of THB 82.49 million.
SG Capital Public Company Limited (SET: SGC) rose by 10.71% or THB 0.12 to THB 1.24, with a trading value of THB 47.42 million.
JAS Asset Public Company Limited (SET: J) surged by 11.45% or THB 0.15 to THB 1.46, with a trading value of THB 1.26 million.
Maybank Securities (Thailand) reported that the rise in stock prices of JMART and JMT was driven by better-than-anticipated earnings results for the second quarter of 2024. JMT disclosed a net profit of THB 367 million for the period, surpassing the consensus forecast of THB 283 million. Additionally, JMART posted a net profit of THB 340 million in 2Q24, marking a significant turnaround from a loss of THB 611 million in the same period last year and surpassing market expectations of THB 137.6 million.
Both JMART and JMT experienced a rebound in their share prices after a decline over the past one to two months. The positive performance of these companies also lifted the sentiment for SINGER and SGC.
Meanwhile, Trinity Securities highlighted in its report that JMT posted a net profit of THB 367 million in the second quarter of 2024, showing a QoQ decrease of 12% and a YoY decline of 33%, closely aligned with the firm’s projections. The profit dip was attributed to a 9% QoQ drop in JMT’s cash collections in the first quarter of 2024, amounting to THB 1,309 million, the lowest level in three years. This decrease could be partially influenced by seasonal and economic factors, resulting in reduced household debt repayments.
Cost of services surged by 8% QoQ and 27% YoY, primarily driven by heightened litigation expenses as the company prioritized expediting litigation processes to encourage debtors to engage in negotiations. Additionally, significant pressure in this quarter stemmed from debt provision expenses amounting to THB 236 million, marking a QoQ increase of 25% and a substantial YoY rise of 324%, attributed to lower-than-anticipated cash collections.
The firm retained JMT’s full-year 2024 earnings projection at THB 1,549 million, reflecting a 23% YoY decline. The company’s profit in the first half of 2024 contributed 51% to the full-year earnings projection, with expectations of a potential profit recovery in the second half as cash collections from debtors could enhance following the litigation, which might alleviate the provisioning trajectory. Nevertheless, there is an additional factor that would weigh on profits, namely, the anticipated sustained high levels of litigation expenses until 2025.
Trinity Securities maintained a ‘BUY’ recommendation for JMT with a target price of THB 17 per share.
