Earnings Report /
Thailand

JMT Network Services PCL: Result beat, strong debtstock growth

  • 2Q20 earnings were 19% above our estimate

  • JMT posted 2Q20 earnings of Bt227m

  • 1H20 profit jumped 48% YoY to Bt434m

Bualuang Securities
14 August 2020

We are bullish about JMT’s 2020 and 2021 profit growth profiles, driven by a surge in consumer NPLs and supported by good OPEX control. There would be scope for upside to our earnings forecast, should the company beat our assumptions for debtstock growth or ROI. In an environment so unfavorable for most SET-listed stocks that their earnings profiles are uncertain, weak, or outright disasters, JMT stands out as a clear BUY!

2Q20 earnings were 19% above our estimate

JMT posted 2Q20 earnings of Bt227m, up by 53% YoY and 10% QoQ. The result was 19% above our estimate and 15% ahead of the Bloomberg consensus, due to stronger portfolio growth than modeled. We had anticipated 2Q20 acquired debtstock growth of 25% YoY; the firm posted 33% YoY. 1H20 profit jumped 48% YoY to Bt434m, which represents 53% of our old 2020 projection.