BANGKOK - JWD InfoLogistics PCL (SET: JWD), a leading supplier of a full range of land-based logistics services, expressed confidence of a recovery in the second half year, and that its hazardous goods storage and management, active automotive management and cross-border cargo transport businesses will enable it to record the 2016 results that are as impressive as the previous year's results, despite the Q1 revenue contraction due to renovation of the automotive parts storage and distribution site at Laem Chabang port to turn it into a chemical supply chain centre and an LCL consolidation hub, and to the volumes of imported and exported hazardous goods and chemicals which were lower in January and February and did not pick up till March. JWD's management are committed to expanding the Company's businesses in Thailand and the ASEAN region continuously, and have planned to launch the chemical supply chain centre and the LCL consolidation hub in Laem Chabang port in Q2 or Q3 as well as general, frozen and cold-storage warehouses, which will increase the 2nd half year revenue.
Dr Eakapong Tungsrisanguan, Chief Financial Officer, JWD, revealed that the Company expects improved results for Q2/16 (Apr-Jun) due to higher logistics demand in the import-export sector and continuous investment, which will enable it to record the results for 2016 at the same level as those for 2015. The core segments that are forecasted to show significant growth include the hazardous goods and chemicals storage and management, active automotive storage and management (which will focus more on on-site service) and cross-border cargo transport (which will likely experience an exponential growth rate), which will allow it to record a growth in total revenue for 2016, despite the Q1/16 y-o-y decreases in total revenue to THB 549.3 million and in net profit to THB 46 million, he said.
The slowdown in Q1 was partly caused by JWD's decision to turn the automotive parts storage and management site at Laem Chabang port, Chon Buri, where the cargo storage service agreement had expired, into a 6,900sq.m. JWS Chemical Supply Chain (JCS) centre and a 9,100sq.m. LCL consolidation hub, as a way to improve its cargo management capacity and the gross profit margin rate. The slightly lower revenues from the hazardous goods and chemicals storage and management segment in January and February were attributable to lower volumes of hazardous goods and chemicals imported and exported through Laem Chabang port, possibly as a result of the importers' and exporters' adoption of a wait-and-see approach to cope with the plunging oil prices and their impact on costs of materials. However, the import/export volumes returned to normal in March and are projected to rise further throughout the remainder of 2016.
"We experienced a slowdown in Q1. However, the revenue growth and gross profit margin rates of the on-site service automotive storage and management and cross-border cargo transport segments remained high. We are confident that our yearly results will be at least as satisfactory as the previous year's, because our logistics and warehouse investment projects in Thailand and the ASEAN region will be completed and start generating revenues in the second half of this year, and the AEC introduction is facilitating a fast expansion of the cross-border cargo transport business, added he.
Mr Chawanin Bunditkrisada, Chairman of the Executive Committee and Chief Executive Officer of JWD, noted that the Company will continue its campaign to expand its logistics business in Thailand and the ASEAN region. The JCS centre and the LCL consolidation hub at Laem Chabang port, the constructions of which are expected to be completed in Q3, will enhance the competitiveness and produce more revenues for the Company over the second half year, he said.
Concerning overseas operations, JWD will commence in Q3 the operations of general, frozen and cold-storage warehouses on a 3,440sq.m. plot in Cambodia, which are expected to achieve a total occupancy rate of 50% by year-end. It also seeks to make several more investments in Thailand and other ASEAN markets through joint ventures, mergers and acquisition and new development projects, which will influence positively the 2016 operating results and enable the Company to raise the revenue share of its overseas projects from the current level of 8% to 25% by 2020, and secure ASEAN leadership in the logistics service industry.
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/.
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