Analysts Recomm. “BUY” on JWD following a Collaboration with Thailand Post-Flash Express

Five analysts retain a “BUY” rating on JWD Infologistics Public Company Limited (JWD) after teaming up with Thailand Post and Flash Express to provide cold chain express services, citing that this collaboration would boost the company’s performance to grow sustainably until 2022.

KTBST Securities (KTBST) holds a BUY rating on JWD but raises the target price to 22.00 baht from 21.00 baht while maintaining 2022E core PER at 38x, which implies +0.25 SD above its 5-yr average. 

JWD held a press conference yesterday (Aug. 24), introducing the new cold chain express services “Fuze Post” by collaborating with Thailand Post and Flash Express, the Thai leading express delivery. The new services will launch into the market on Sept. 1, covering Greater Bangkok at an initial stage before extending the services to the upcountry market in early 2022E. 

JWD has forecasted the new services to boost revenue in the cold storage business by twofold in 2022E. KTBST is positive about JWD earnings outlook as the new services should strengthen the cold storage business, thus upgrading 2022E core profit forecast by 4% to 585 million baht, which represents a +36% increase YoY, as KTBST predicts the cold chain express services to generate profits of 15.0-20.0 million baht based on the company’s revenue forecast of 150-200 million baht and net profit margin of 10%.

KTBST, however, leaves the  2021E forecast unchanged at 429 million baht (+45% YoY) as it does not expect a significant contribution from the new services.

Analysts	Rating	Target Price
KTBST Securities	BUY	22.00 Baht
Tisco Securities	BUY	20.00 Baht
Kasikorn Securities	BUY	19.10 Baht
Country Group Securities	BUY	18.60 Baht
Finansia Syrus Securities	BUY	18.00 Baht