JWD InfoLogistics (JWD.TB) Posts Record Revenues for 2018

Feb 25, 2019 20:00 JST

Source: JWD InfoLogistics PCL

- Revenues 3.038 Bn Baht; Board approves div. of .21 Baht/share
- Invested 23.66% Transimex; Revenue target +15-20% for 2019

BANGKOK, Feb 25, 2019 - (ACN Newswire) - JWD InfoLogistics PCL (JWD.TB), the leading total logistics service provider in ASEAN, has broken records with 2018 revenues of 3.208 billion baht, an increase of more than 32%, and net profits of 252.1 million baht, an increase of 23%, after using proceeds from an asset sale to a trust to expand investment as planned. The success in generating income and profits resulted in the Board of Directors approving dividend payments (from a separate financial statement) of 0.21 baht per share. The Board had earlier approved JWD's acquisition of 23.66% shares in Transimex Corporation, the 3rd largest integrated logistics service provider in Vietnam. JWD executives have forecast revenue growth of 15-20% for 2019.

Dr Eakapong Tungsrisanguan, Chief Financial Officer of JWD, announced the record-breaking 2018 performance generated revenue, which was better than the forecasted 10% growth. This was possible because the company used money from the sale of assets to the Industrial Growth Freehold and Leasehold Real Estate Investment Trust (AIMIRT) to expand new investments as planned. This included investment to hold a 60% share in Chi Shan Long Feng Food Co., Ltd. (CSLF), a food service company in Taiwan, which began to realise revenue in May last year. In addition, most of JWD's businesses expanded resulting in good overall performance, with income from rent and services totaling 3.208 billion baht. This was +32.4% on the previous year's earnings of 2.423 billion baht, with net profits +23.3% to 252.1 million baht, compared to 204.5 million baht the previous year, before extraordinary gains from selling assets to the Trust.

The businesses that saw strong growth in the past year were: (1) the cold storage business which earned revenues of 604 million baht, a growth of 34.4% over the previous year, after making continuous recovery from the IUU Fishing yellow card problem of 2017, (2) the transportation business earned revenues of 497.1 million baht, a growth of 31% over the previous year, from increased transport of train carriages, motor vehicles and dangerous goods, (3) the dangerous goods management business earned revenues of 497.3 million baht, a growth of 7.5% over the previous year, (4) the general warehouse business clearly recovered at the end of last year due to LCL warehouse services and clients returning to rent additional space, and (5) the food service business that realised revenues of 399.8 million baht after investment in CSLF last year.

"Although last year the company had expenses in renting back cold storage and document warehouses sold to AIMIRT, but we were still able to operate with decent growth. It shows that we succeeded in using the money to expand investment that generated income and increased profit at a rate that was higher than our spending. This was particularly so with our investment in CSLF where we improved its financial status and increased profitability. In the future it will also help to promote our cold storage business in ASEAN," Dr Eakapong said.

Therefore, the Board of Directors' meeting approved an annual dividend payment (from a separate financial statement) for 2018 at the rate of 0.21 baht per share, totaling 214.2 million baht, or 78.9% of the separate financial statement. The company has set the list of shareholders who are entitled to receive dividends, record date 8 May 2019, and will pay the dividends on 24 May 2019.

Mr Charvanin Bunditkitsada, Executive Committee Chairman and CEO, said that the company plans to expand its business in the ASEAN region to reach all nine countries within 2020, having already invested in five; Thailand, Cambodia, Myanmar, Lao People's Democratic Republic, and Indonesia (not including Taiwan). For Singapore and Malaysia, expansion will be through CJ Logistics, a partner of JWD from the Republic of Korea. The board has already given approval for the company to buy 23.66% of the shares in the Transimex Corporation, a fully integrated land, sea and air logistics service provider. The company is registered in the Ho Chi Minh stock exchange, Vietnam. JWD is preparing to establish a subsidiary in Vietnam to buy these shares which require an investment of 527 million baht (about 390 billion Vietnamese dong).

Transimex Corporation was founded in 1983 and is the third largest logistics service provider in Vietnam with a revenue of 3 billion baht last year. Its main business bases are in Ho Chi Minh city and Hanoi with storage area of more than 400,000 square metres. The company offers a variety of services such as freight forwarder, international shipping by sea and air, customs clearance, as well as cargo, cold storage and port services. Investing in the Transimex Corporation is an important step and a large investment by JWD which is a big player with high potentials and a strong network that will help it to build a robust business base in Vietnam.

For 2019, JWD has set a revenue growth target of 15-20%. JWD is confident that its operations will see continuous growth due to profit sharing from its shareholding proportion in Transimex Corporation starting this year. The food service business is likely to grow rapidly from various value added services for convenience stores and fast food customers in Taiwan. For cold storage, a new facility (building 8) has been added, and robotic systems will be installed in the middle of this year to support the growing demand for rental space and efficiently improve cost reduction, while regional warehouse rental and cross border transport are constantly expanding.

About JWD InfoLogistics PCL

JWD InfoLogistics (JWD.TB) 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:
Yuthachai Praikanahok
MT Multimedia for JWD
Phone: +66 9 1736 2866 or +66 2612 2081 ext 125
E-mail: yuttachai.p@mtmultimedia.com

Source: JWD InfoLogistics PCL
Sectors: Transport & Logistics, Funds & Equities