JMART to Report a Soaring 2Q Profit, Expecting to Book Huge Amount from SINGER and JMT!!

Singer Thailand Public Company Limited (SINGER) has reported its profit of 2Q19 consolidated financial statement at 52.50 million, increased THB 10.12 million or 23.86% when compared to the same period of last year, and also an increase in EPS of ฿0.14/share.

However, in April 2019, SINGER increased its capital 31,505,235 shares; as a result, weighted average shares increased 101,157,873.08 shares, and EPS in 2Q19 showed a lower result when compared to an EPS at 0.16 in 2Q18.

As for the performance in six months, SINGER reported a net profit of 92.54 million, turned around from a net loss of THB 142.10 of the same period of last year. An EPS increased by ฿0.29/share when compared to a loss of EPS at ฿0.53/share in 6M18.

Total revenue of SINGER decreased by THB 79 million or 10.4% when compared with the same quarter of the previous year, this resulted in decrease in revenue from sales of goods of THB 100 million due to decrease in sales of TV approximately THB 66 million, and Air Time Vending Machine of THB 28 million.

Although total revenue decreased when compared with the same quarter of previous year, but SINGER increased in gross profit margin from 41.5% in 2Q18 to 50.6% in 2Q19 since SINGER focused on sales of high margin products and costs controlling; therefore, decreased in revenue from sales of goods 19.6% while decreased in cost of goods sold 32.1%.

For total expenses in 2Q19, even SINGER would need to recognize employee benefit of THB 14.7 million from changing in Labour Protection Act but by overall, the expenses still decreased of THB 90 million or 12.4%. This mainly was from cost controlling over the cost of goods sold and distribution costs.

Moreover, total liabilities decreased by THB 851 million or 23.8% when compared with the year ended 2018; this was mainly from payment of matured debenture of THB 500 million.

 

JMT-SINGER to back JMART’s profit up

Reporter has stated that Jay Mart Public Company Limited (JMART) will announce its 2Q19 consolidated financial statement in the morning of Tuesday, August 13, 2019.

Capital Nomura Securities had made an analysis earlier with an estimation of JMART’s profit in 2Q19 at THB 132.10 million, increased 197% YoY and 12% QoQ. Nomura also stated that the hike will represent a recovery of JMART’s profit for two straight quarters while the profit of 2Q19E will be the highest in seven quarters. An increase of JMART’s profit will be due to the following:

1) JMT Network Services Public Company Limited (JMT), which JMART holds 55.80% of ordinary shares, is expected to report a net profit in 2Q19 at THB 151 million, increased 24% YoY and 5% QoQ. The increase will be due to the fully amortized. In this regards, JMART, in reference of holding 55.80% stake, will earn a profit of THB 84.30 million.

2) SINGER, which JMART holds 30.30% of ordinary shares, will contribute a profit of THB 15.91 million to JMART, according to the reported financial statement earlier with a net profit of THB 52.50 million.

Meanwhile, the other two companies which are J Mobile and J Fintech will also have an outstanding growth as well and will reflect in a net profit in the second quarter of 2019.

Nomura-Bualuang recommend “BUY” JMART with a huge upside!

Nomura had given a “BUY” recommendation on JMART with a target price of ฿15.30/share, having an upside of 36.61% along with a dividend yield of around 3.30%.

Bualuang had revised JMART’s profit to THB 504 million or ฿0.70 of EPS, giving a “BUY” recommendation with a target price of ฿14.00/share (25% upside).