SET-listed Jaymart expects to swing to a profit this year after implementing restructuring plans, cutting costs and exploring growth opportunities in fintech, enabled by artificial intelligence and blockchain.
Chief executive Adisak Sukumvitaya said Jaymart enjoyed a profit of 490 million baht in 2017 but recorded a loss of 277 million baht last year.
Strong profit in the first quarter ensures positive results throughout the year, he said.
The company hopes that the group's operations, which include mobile phone distribution, personal loans, debt management/collection, direct sales and hire purchase, will continue to perform well this year after fetching 118 million baht in net profit in the first quarter, a 163% increase from the same period last year.
Some 66.7% of the profits came from mobile, with 26.4% from subsidiary JMT.
Revenue from sales and services dropped significantly in the period.
Jaymart reported total revenue from sales and services of 2.74 billion baht in the first quarter, a dip of 369.9 million baht or 11.9% year-on-year.
Revenue from debt collection services and other services operated by JMT Network Service totalled 724 million baht, an increase of 167 million baht or 30% on the same period of last year, a result of improved collection efficiency.
Jaymart Mobile has an exclusive partnership with Advanced Info Service (AIS) to increase margins and manage inventory better, Mr Adisak said, adding that Jaymart controls 7-8% of the 100-billion-baht smartphone retail market in Thailand.
The restrictions placed on Huawei as part of the US-China dispute do pose an obstacle, he said, but Jaymart is unconcerned because it sells multiple brands.
Huawei smartphones contribute about 30% of Jaymart's revenue, with all Chinese brands making up 47% of sales in first quarter.
Chinese brands' contribution to Jaymart's revenue was up from 26% in the same period last year, while Samsung's declined from 50% to 39% and Apple's from 18% to 13%.
By year-end, subsidiary J Ventures will begin peer-to-peer (P2P) lending services, Mr Adisak said. Blockchain is used for the decentralised digital lending platforms for JFIN coin and P2P lending.
