JMT, the Future Contender for SET50 Member, Expects to Catch Up with BAM in No Time

The share price of JMART Group has been on a rise, especially in the past few months as investors are speculating on the upside potential of the group after seeing a continuous growth from the group’s earnings.

 

JMART surged more than 110% this year, making an all-time high in March at a closing price of Bt43.50 per share. However, the business performance of Jay Mart Public Company Limited (JMART) would not reach this point without its key player, JMT Network Services Public Company Limited (JMT).

 

JMT, a 52.8% subsidiary of JMART, operates a non-performing debt management business. The company reported a net profit of 1,047 million baht in 2020, increased 53.67% YoY. The net profit was higher than JMART that recorded 797 million baht for the year.

 

Maybank Kim Eng stated that JMT has a short-term catalyst on being listed in SET50 Index within 6-12 months, based on its continuous growth. Even though JMT is behind the sector’s leader, Bangkok Commercial Asset Management Public Company Limited (BAM), Maybank still has a positive outlook on JMT due to it being a growth stock. The security company expected JMT to catch up with the leader in no time.

 

Maybank upgraded JMT’s net profit in 2021-2022 to 1,479 million baht (+41% YoY) and 2,042 million baht (+38% YoY), respectively, with a far value (fully diluted from JMT-W2) at Bt53 per share, based on P/E21 at 40x or PER at 1x.

 

Recently, the Board of Directors of JMT has approved in principle for the investment in True Valuation Co., Ltd. (True) and KT Appraisal Company Limited (KT) which operates the asset appraisal business and valuer.

The Board of Directors approves in principle to invest in both companies in the proportion of holding not more than 55% of the paid up capital of both companies by investing in newly issued shares not exceeding 61,111 shares and 114,889 shares for KT and True. The investment with an investment value of not more than 7 million baht for KT. and an investment value of not more than 11 million baht for True.

 

The benefits that the company has received are Asset Appraisal Business. This can continue to expand the company’s business in providing valuation services to financial institutions which are business partners of the company including third parties that need to conduct asset appraisals. Both companies have expertise in asset valuation with industry-competitive reliability, cost and operational timing. This will be the business of the company in the company’s ecosystem in the future.