JWD marked its ‘year of growth’ with a Q2 earnings figure of THB 79.8 million (up 64%) and a Q2 total revenue figure of THB 869.4 million (up 11.8%), as most of its core business segments grew healthily and the sharing of profit from TRANSIMEX CORPORATION in Vietnam began. It is confident of maintaining a high growth momentum over H2, given July’s satisfactory revenue level and the commencement of operation of the joint-venture firms established jointly with Bok Seng and CJ Logistics. To handle the ongoing trade war situation, the company’s management has employed the risk-management strategies that include overseas investment diversification, logistics expansion to cover both B2B and B2C markets and introduction of food business.
Dr Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), an ASEAN top logistics and supply chain solution, revealed JWD’s Q2 (April-June) results, which showed continued growths despite the low season and a significant number of holidays during the period. He highlighted an earnings figure of THB 79.8 million (a 64% Y-o-Y rise from THB 48.7 million) and a total revenue figure of THB 869.4 million (a 11.3% Y-o-Y rise from THB 780.8 million), which he attributed to the shared profit of THB 14.5 million that was earned following the acquisition of a 23.94% stake in TRANSIMEX CORPORATION, one of Vietnam’s leading logistics solutions provider and a company listed on the Ho Chi Minh City Stock Exchange.
The core segments that posted high growths were (1) general goods warehousing and management, with THB 86.9 million in revenue (a 15.7% Y-o-Y growth) and 24.1% in average gross profit margin (compared with the 3.2% level recorded for the previous comparable period), driven by the continuously rising demand for rental space, JWD Chemical Supply Chain (JCS) operation’s decent growth and the less-container-load (or LCL) consolidation hub’s services to several major freight forwarders; (2) dangerous goods warehousing and management, with a record THB 145.4 million revenue level (a 15.8% growth) achieved due to a sharp rise in container storage volume; (3) automotive storage and management, with THB 114.3 million in revenue (a 9.6% growth); and (4) food business in Taiwan, with THB 116.1 million in revenue (a 62.2% growth) due to recognition of full-quarter revenue (revenue was recorded for the previous comparable period for two months only).
The excellent Q2 growths contributed positively to the H1 (January-June) results, with earnings jumping 86.9% Y-o-Y to THB 169 million (from THB 90.4 million), gross profit margin rising to 28% (from the 26.8% level recorded for the previous comparable period) and total revenue reaching THB 1.7662 billion (a 22.2% rise Y-o-Y from THB 1.4457 billion).
Mr Charvanin Bunditkitsada, JWD’s Chairman of the Executive Committee and Chief Executive Officer (CEO), noted that the company has set a Y-o-Y revenue growth target at about 20% (from THB 3.2839 billion), and that its H1 results presented a slightly-higher-than-expected total revenue growth rate and a dramatic jump in earnings following the start of the sharing of profit from TRANSIMEX CORPORATION.
He expressed confidence that JWD will maintain a growth momentum during H2, given July’s satisfactory overall performances. For the dangerous goods warehousing and management segment, further growth is expected during Q3 due to a sustained high demand level. The JCS segment will generate increased revenue during the late year owing to new orders from major customers. The cold storage segment is forecasted to create higher growths. The Bangna warehouse is being converted into a cold storage to cater to demand from major customers. The general goods warehousing and management segment and the automotive storage and management segment will likely maintain decent growth rates.
The company has commenced the operation of the project cargo logistics business in Thailand and regionally (jointly with Bok Seng Logistics, its Singapore partner), as well as the operation of B2B and B2C cargo management business in Thailand (jointly with CJ Logistics, a major South Korean logistics solutions provider), and it has most recently won orders from major customers. TRANSIMEX CORPORATION’s H2 performances are forecasted to be better than the H1 performances, which would lead to greater shared revenue.
The ongoing China-US trade war is undeniably affecting the overall economy and the export volume. JWD, however, has employed sound risk management strategies, including intensifying and diversifying its overseas investments in Cambodia, Laos, Myanmar, Indonesia, Vietnam and Taiwan, and introducing new logistics solutions for both B2B and B2C markets, as well as logistics infrastructure and food supply chain in Taiwan, in order to spread the revenue sources and strengthen its logistics capacity for all the segments with growth potential and requiring specialised expertise.