FSS Expects JMT’s Core Profit to Grow 37% as NPL Portfolio Expand, Recomm. “BUY” at ฿42
FSS Expects JMT’s Core Profit to Grow 37% as NPL Portfolio Expand, Giving a "BUY" Recommendation with a Target Price at ฿42.00/Share.
FSS Expects JMT’s Core Profit to Grow 37% as NPL Portfolio Expand, Giving a "BUY" Recommendation with a Target Price at ฿42.00/Share.
7 ต.ค. 2563

Finansia Syrus expected JMT to report an outstanding core profit growth to widen the room for share price to increase as the security company initiated the coverage on JMT, giving a target price at ฿42.00/share.
 
In the report, Finansia Syrus Securities (FSS) stated that it believed there is still room for JMT Network Services Public Company Limited (JMT)’s share price to increase, as FSS expected the company to deliver remarkable core profit growth of 37% CAGR from 2020-2022 with an especially large increase of 45% YOY in 2021E.
The key catalyst should mainly come from its revenue side. First, FSS expected a significant increase in its non-performing loan (NPL) management business revenue (80% of revenue) driven by 1) strong cash collection, consisting of 3.5 million accounts, compared to its peers such as 300,000 accounts for CHAYO and 90,000 accounts for BAM, 2) a rise in its fully-amortized portfolio volume at 25% CAGR from 2020-2022; and 3) an aggressive NPL acquisition plan in 2020-2021E from THB 3.4bn in 2019 to THB 6bn in 2020 and THB 10bn in 2021. Second, FSS believed JMT’s insurance business, 9% of revenue, will turnaround from 2020 onward.
 
FSS’ target price at ฿42.00/share implied a 34.75x FY21E P/E, +0.5 STD above its 5-Y average.