Several brokerage firms gave recommendations to buy the stock of JWD InfoLogistics Public Company Limited (JWD), a leading fully integrated in-land logistics service provider, forecasting strong growth. Yuanta Securities (Thailand) suggested accumulating of the stock and that its fair value stands at THB 13.40, citing predicted y-o-y and q-o-q growth in Q2/17 following a recovery in the cold storage and warehousing segments due to continued increase in the number of new customers, as well as forecast growth that could last at least three to four quarters, as driven by a better utilization ratio, the possibility that JWD Chemical Supply Chain (JCS) business will turn profitable starting Q4/17 and the company's plan to sell its assets to a real estate investment trust (REIT).
Tisco Securities also gave a buy recommendation for JWD, given the recovery of the warehousing and cold storage businesses in the CLMV markets (i.e. Cambodia, Laos, Myanmar and Vietnam) and potential mergers and acquisition (M&A) deals. It anticipated that the company would post y-o-y and q-o-q growth in Q2/17 as a result of recovery in the core segments and shrinking selling, general and administrative (SG&A) expenses. It reassessed the stock's fair value for 2018 at THB 11.40.
Thanachart Securities is another brokerage firm to give a buy recommendation for JWD, setting the fair value at THB 11.30. It predicted healthy growth and referred to the new business that is co-invested with Siam Motors Group, an expanding fleet of pickup trucks for cargo carriage, the recovering warehouse and automotive yard management business (one of the company's core businesses) due to a rise in demand for cold storage at Mahachai warehouse to the normal level of 35,000 tonnes in June (compared with 18,000 tonnes in November 2016), a rise in utilization ratio for JCS to 60% in late Q2/17 (compared with 40% in Q1/17) , the launch of the LCL consolidation hub in May and an expected increase in demand for automotive-related warehousing services, especially on-site services (i.e. services supplied at customers' plants).