Project Cargo Logistics Operations through JV with Bok Seng
BANGKOK – (ACN Newswire) – JWD InfoLogistics PCL (JWD.TB), a leading Asean-based logistics solutions provider, has announced strong Q3 results, with revenue at THB 848.6 million (up 32.2% Y-o-Y) and net profit at THB 70.1 million (up 24.1% Y-o-Y), achieved by healthy growth 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 growth to be sustained over Q4. In addition, the Company 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, JWD CFO, disclosed JWD’s Q3 (July-Sept) results, highlighting the outstanding Y-o-Y growths rates, including 32.2% Y-o-Y growth in rental and service revenue (to THB 848.6 million from THB 642 million) and 24.1% Y-o-Y growth in net profit (to THB 70.1 million from THB 56.5 million).
The growth was fueled by strong sales in almost all segments, including the conventional and recently launched ones: cold storage revenue rose 33.1% with an occupancy ratio (as of end Q3) of 85.3%, while revenue in cargo transport, document and data storage, dangerous goods storage and management and removal segments rose 18.5%, 13.1%, 11.8% and 9.5%, respectively. This was supported 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.
For 9 Month (January-September) results, rental and service revenue totaled THB 2.2632 billion, a 26.3% Y-o-Y gain 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 growth posted for nearly all core segments (both domestic and overseas operations).
“Given the better-than-expected growth rates over the recent period, and forecasting prolonged growth 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), or approximately 30% Y-o-Y growth”, the CFO said.
Mr. Charvanin Bunditkitsada, Chairman, Executive Committee and JWD CEO, noted that JWD constantly explores opportunities to win new customers, ensuring continuous growth, and recently partnered with Singapore-based Bok Seng Logistics Pte Ltd (Bok Seng) to establish JWD Bok Seng Logistics (Thailand), a Thai-incorporated JV firm with capital of THB 4 million, 60%-owned by JVK (a JWD subsidiary) and 40%-owned by Mr. Ng Lian Soon (Bok Seng’s majority shareholder). The JV provides 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-how, in Thailand and Laos.
The JV 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-how and experience of Bok Seng as well as its specialised or heavy handling equipment or machinery and expertise in assembly and installation. Bok Seng is present in several SE Asian markets, including Malaysia, Indonesia, Vietnam, Myanmar and Cambodia, and employs a universal platform for all markets.
JWD sees project cargo logistics as promising 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 infrastructure including dual-track and high-speed rail systems, airports, marine ports or Eastern Economic Corridor (EEC)-related facilities in Thailand. It noted a limited number of players in these countries with the 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 use JWD’s warehouse space at Laem Chabang Port to facilitate its operation, employing Bok Seng’s heavy machinery to handle transport assignments from customers. The know-how and resources of the partners will be used to expand businesses and propel JWD’s growth, while project cargo logistics will become one of JWD’s main sources of revenue in the future.
About JWD InfoLogistics PCL
JWD InfoLogistics (SET:JWD) knows everything about logistics and supply chain management. The Group’s fully integrated logistics and supply chain solutions cover all types of warehousing, including the free zone area, in fields where it has competitive advantage in terms of the ability to manage one-stop and unconditional service offers because it wholly own all warehouses. The Group is also proficient in customs procedures, product transportation and distribution, as well as logistics software development. Founded in 1979, the JWD Group has grown to comprise 18 subsidiaries and operates warehouses and yards covering a total storage space of approximately 800,000 sqm. The Group currently employs 1,300 staff and has branch offices in 32 countries. For more information, please visit www.jwd-group.com/en/.
Contact:
For JWD InfoLogistics:
Yuttachai ("Tle") Paikanahok
MT Multimedia
T: +66 2612 2081 #125
M: +66 9 1736 2866
E: yuttachai.p@mtmultimedia.com