JWD, a leading fully integrated in-land logistics service provider, posted strong Q2/17 performances, as healthy growths in its core segments, despite low season, pushed up the net profit to THB 49.5m, a 551% y-o-y surge from THB 7.6m, and up 23% q.o.q., and contributed to an outstanding revenue growth. The management expected to see continued growths in the second half-year results, as the recently invested projects have turned profitable and drawn new customers, which will help the company achieve its full-year growth targets.
Dr Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), a leading fully integrated in-land logistics service provider, announced JWD's strong recovery in Q2/17, with a net profit of THB 49.5m, up 551% y-o-y from THB 7.6m and a dramatic q-o-q growth from THB 40.3m, and rental and service revenues reaching THB 577.8m, up from THB 557.6m y-o-y and from THB 572.8m q-o-q, despite low season.
Factors contributing to the impressive y-o-y growths in Q2 included expansions in core businesses. The hazardous goods storage and management business posted a record revenue level of THB 118.3m, a 11% y-o-y rise, thanks to more import and export activities and the resulting 10% y-o-y increase in the number of hazardous goods containers processed at Laem Chabang Port to 42,478. As for cold storage, the revenue stood at THB 112.2m, up 27% y-o-y, due to rapidly rising demands for space. As at the end of Q2, the overall occupancy ratio of all the three cold storage warehouses of JWD reached 73%, with the Bangna-Trat plant achieving full capacity and the Suwinthawong warehouse near-full capacity. The Q2 average gross profit margin rate for the cold-storage segment hit 44.4%.
For automotive storage and management, revenue stood at THB 101.3m, a 7.5% y-o-y rise, as a result of contracts with both existing and new customers. similarly, the inland and cross border transport segment grew strongly, with the Cambodia-destination order volumes jumping sharply and an enhanced capacity to serve following the company's decision to raise the number of car carriers, refrigerated trucks and trailers in its fleet to 31.
The strong Q2 growths in terms of both revenue and net profit led to satisfactory half-year results for Jan-Jun'17, including a rental and service revenue figure of THB 1.1506b, up 4.3% y-o-y (from THB 1.1034b), and a net profit figure of THB 89.8m, up 67% y-o-y (from THB 53.7m).
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD, said that, over the remaining five months of this year, the company is likely to benefit from continued growths in the core segments as well as from the recently invested investments in Thailand and other Asean countries. Owing to a rapid increase in occupancy ratio, the JWD Chemical Supply Chain (JCS) business has reached the break-even point and become profitable earlier than forecasted. The JWD Express business, which began commercial operation in May, is taking orders from new customers who are market-leading retailers of home furniture and maintenance tools. These, he noted, will help improve the second half-year results.
About the integrated automotive parts logistics business run by Siam JWD Logistics, a joint-venture firm established by JWD and Siam Motor Group, new orders have been received for a Siam Motor Group-affiliated automotive parts production plant and will also be received from non-Siam Motor Group customers, which will increase the shared profits from the joint venture. Demand for storage/warehousing space at the Laos, Myanmar and Cambodian plants is also strong.
"After making investments recently, we are now enjoying greater revenues and a new period of robust growth. For the remaining five months, we believe that the operating results will be decent enough to allow us to record at least the targeted 7% full-year growth rate. We are also considering making new investments, with reasonable terms, to produce future growths", added he.
JWD is studying the feasibility of selling its and its subsidiaries' cold-storage facilities and document-storage warehouses to a real estate investment trust (REIT), as well as other financing options, such as issuance of debentures or other fixed-income securities, or even tapping of its own excess cash.