All JWD’s businesses will expand fast, especially its cold-chain logistics & storage operation, in tandem with ongoing growth in e-commerce and import-export industries (tied to improving logistics infrastructure, such as cross-border rail). Moreover, there’s scope for upside tied to potential new investments. We have a BUY call to a YE22 target price of Bt19.
Both net and core earnings beat our estimates
JWD posted 2Q22 net earnings of Bt154m, up by 33% YoY and 23% QoQ. NPAT was 19% ahead of our estimate (higher equity income and extra items and lower tax expenses than we expected), but missed the consensus projection by 10%. Stripping out extra items, core profit would be Bt144m, up by 25% YoY and 36% QoQ. The core number was 12% above our estimate (higher equity income and lower tax expenses than assumed) and 7% ahead of the consensus.