JWD Announces Sharp Q3 Growths, Forecasts THB 3bn Full-Year Revenue, to Operate Project Cargo Logistics Through JV with Bok Seng

General Press Releases Thursday December 6, 2018 12:42
Bangkok--6 Dec--MT Multimedia

JWD declared excellent Q3 results, with revenue at THB 848.6 million (a 32.2% Y-o-Y rise) and net profit at THB 70.1 million (a 24.1% Y-o-Y rise), achieved due to healthy growths in most segments, full-quarter revenue from CSLF's food service business and shared profit from PPSEZ. Raising its full-year revenue target to THB 3 billion, it expects growths to be sustained over Q4. It recently decided to set up a joint-venture firm to be tasked with offering project cargo logistics solutions in Thailand and Laos.

Dr. Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), a leading Asean-based specialised logistics solutions provider, revealed JWD's Q3 (July-September) results, highlighting outstanding Y-o-Y growths rates, including a 32.2% Y-o-Y growth in rental and service revenue (to THB 848.6 million from THB 642 million) and a 24.1% Y-o-Y growth in net profit (to THB 70.1 million from THB 56.5 million).

The growths were fueled by strong sales growths in almost all segments, including the conventional and recently launched ones: in the cold storage segment the growth rate stood at 33.1% and the occupancy ratio (as at end of Q3) at 85.3%, and growth rates in the cargo transport, document and data storage, dangerous goods storage and management and removal segments reached 18.5%, 13.1%, 11.8% and 9.5%, respectively. They were also contributed by increased revenue from the food service provided by CSLF, a Taiwan-based company (due to recognition of full-quarter revenue), as well as by shared profit from PPSEZ, a listed company in Cambodia.

As for nine-month (January-September) results, rental and service revenue totaled THB 2.2632 billion, a 26.3% Y-o-Y surge from THB 1.7926 billion, and net profit reached THB 160.5 million, a 9.6% Y-o-Y increase from THB 146.4 million, driven by the growths posted for nearly all core segments (both domestic and overseas operations).

"Given the better-than-expected growth rates over the recent periods, and forecasting prolonged growths in the final quarter, especially in the cold storage, cargo transport, dangerous goods storage and management and food service segments, we have decided to raise our full-year revenue target to THB 3 billion (from THB 2.6 billion), an approximately 30% Y-o-Y growth", said he.

Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, noted that JWD relentlessly explores opportunities to win new groups of customers in order to ensure continuous growths and it has recently teamed up with Bok Seng Logistics Pte Ltd (Bok Seng), a Singapore-based company, to establish JWD Bok Seng Logistics (Thailand) as a Thailand-incorporated joint-venture (or JV) firm with a registered capital of THB 4 million and with shares to be 60%-owned by JVK (a JWD subsidiary) and 40%-owned by Mr. Ng Lian Soon (Bok Seng's majority shareholder), for providing project cargo logistics solutions (transport of locomotives, bridge parts, oil and gas platforms, international relocation of oil drilling rigs, etc.), which require engineering expertise and know-hows, in Thailand and Laos.

The said joint undertaking will expand JWD's range of services beyond the transport of medium-sized machines in factories, to include project cargo logistics, involving the transport of bulky, heavy cargo that requires the know-hows and experience of Bok Seng as well as its specialised or heavy handling equipment or machinery and experts in assembly and installation. Bok Seng has its presence in several South-East Asian markets, including Malaysia, Indonesia, Vietnam, Myanmar and Cambodia, and employs a universal platform for all markets.

JWD sees project cargo logistics as a promising business in Thailand and Laos. It is aware that both countries' national economic and investment development plans are being implemented, for example, by construction of dams in Laos and such infrastructures as dual-track and high-speed rail systems, airports, marine ports or Eastern Economic Corridor (or EEC)-related facilities in Thailand. It also notices a limited number of players within the said countries owing to the high levels of expertise and technical sophistication required compared to the transport of general machinery. Customers of project cargo logistics services are predominantly world-class companies and blue-chip companies in Thailand, and they award successful bidders long-term contracts.

In addition, the proposed JV firm will be allowed to use JWD's warehouse space at Laem Chabang Port to facilitate its operation, and to employ Bok Seng's heavy machinery to handle transport assignments from customers. The know-hows and resources from both partners will be used to expand their businesses and propel JWD's growths, and project cargo logistics will become one of JWD's main sources of revenue in the future.

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