SET-listed mobile distributor Jay Mart has slashed its consolidated net profit growth target from 30% to nothing, looking to maintain the 490 million baht posted in 2017.
The revision is mainly driven by provisioning for bad debts of its two subsidiaries this quarter, worth 300 million baht.
Some 200 million baht is for J Fintech, a provider of personal financial loans, and the rest is for Singer Thailand, a network for direct sales marketing, service loans and leasing for consumers, in which Jay Mart holds a 25% stake.
Adisak Sukhumvitaya, chief executive of Jay Mart, said the move is in compliance with conditions set by the International Financial Reporting Standards.
"This will only affect the group's profits this year, as the company is taking a conservative approach," he said.
"Profit growth will return to the 30% annual target from 2019 onward."
Mr Adisak said J Fintech and Singer are two among six core subsidiaries which are aiming to improve operational efficiency and put forward new business models.
Jay Mart group reported its consolidated revenue for 2017 operation at 13.2 billion baht, increasing from 11.2 billion in 2016.
The group's net profit in 2017 was 490 million baht, an increase of 12%, from 438 million.
The revenue and profit growth for the company's 2017 operations were mainly driven by its major flagship mobile phone business, Jaymart Mobile, and JMT Network Services, which provides debt management and business loans.
J Fintech last year booked total revenue of 560 million baht, rising from 257 million in 2016.
But the firm registered a net loss of 48 million baht, better than the 150-million net loss seen in 2016.
Singer booked total revenue of 2.3 billion baht in 2017, declining from 2.5 billion in 2016. Singer's net loss was 9.7 million baht, compared with a net profit of 120 million in 2016.
The group's major flagship mobile phone business unit, Jaymart Mobile Co, is 99% owned by Jay Mart.
Jay Mart's six subsidiaries are: Jaymart Mobile, its handset distribution arm; JMT Network Services, providing debt management and business loans; JAS Asset, which leases retail space in shopping centres and operates the property business; J Capital, a joint-venture investment arm in Myanmar; J Fintech (formerly known as JMT Plus), a provider of personal loans; and J Ventures, which develops technology and digital platform services for the group.
