JMART Jumps 4%, Analysts Recomm. “BUY” at ฿27.5 ahead of All-Time High Projected Earnings

The share price of JMART rose ฿0.80/share or 3.54% to ฿23.40/share with a trading value of 2,557 million baht.

 

JMART stated that the joint venture with KB Kookmin Card will decrease J Fintech’s financial cost, expecting to penetrate all types of personal loan, and believing that the company will post a record high in revenue for five consecutive years. The analyst estimated JMART to record an extraordinary item in 1Q21 worth more than 200 million baht, recommending “BUY” with a consensus target price at ฿27.50/share.

 

Mr. Adisak Sukumvitaya, Chief Executive Officer of Jay Mart Public Company Limited (JMART), through “Kaohoon Jor Talad” Program and FM 102 MHz on February 1, 2021, said that the company has completed the signing ceremony with KB Kookmin Card Co., Ltd. in a joint investment in the company’s subsidiary, J Fintech Company Limited (J Fintech), in a total investment value of 3,450 million baht.

JMART hoped to establish a variety of business types from the cooperation with KB Kookmin Card through the availability of JMART and its subsidiaries. Meanwhile, the company is expecting to record an all-time high in operating results for the next five years, buoyed by lower cost, higher efficiency, and high-end technology.

The company projected to list J Fintech into the Thai stock market within the next two years and expected to move up to Thailand’s top five in loan and credit card businesses.

Maybank Kim Eng was positive toward the partnership between JMART and KB Kookmin Card  as it’s one of the company’s significant moves which would provide upside potential to earnings. JFintech would have sufficient funds in preparation for personal loans expansion, this joint venture would also give JMART an access to low-cost financing. Maybank expected JMART to record an extraordinary item in 1Q21, thus maintaining a “BUY” recommendation.

 

KGI Securities said that a consensus target price of JMART was ฿27.50/share, giving a support level at ฿22.2 and a resistance level at ฿23.5-฿24.00. KGI saw a positive sentiment from JFintech-KB Kookmin Card joint venture on JMART, which will boost not only JMART’s operating results, but also its subsidiaries JMT and SINGER.