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“JRW Utility (JR)” has entered the commercial field on the first day (November 30). Good response during the road show. Investors flock to overflowing IPO stocks. Get ready to raise funds for use in the telecom systems installation business and show third-quarter profit of 63 is up 129.61%.
*** JR is ready to trade, SET IPO price 5.50 baht.
Mr. Manphong Senanarong Deputy Manager, Head of Issuing Division The Thailand Stock Exchange (SET) revealed that the SET has accepted JRW Utilities Public Company Limited or JR to list and start trading on the SET. In the technology industry Information and communication technology Using the ticker symbol “JR” on November 30, 2020
JR operates the main business as a subcontractor. (Subcontractor) through the design, acquisition, construction and installation of telecommunications and information technology systems and energy systems (Turnkey Project), as well as the provision of maintenance and distribution of various equipment. Related to the government’s national infrastructure investment plan AND the expansion policy of the company’s private client base
JR has an IPO security value of 4.18 billion baht, and Finansia Syrus Securities Public Company Limited is the financial advisor. And subscriber and subscriber
*** Confidently the first day is bustling
Mr. Charan Viwat Jesadawut Chief Executive Officer JR is confident that the first day of trading on the stock exchange will receive a good response from investors. This can be seen in the response to the road show which has received a lot of attention. And when the share subscription was opened, it was found that the demand exceeds the allocated shares.
For this year’s business integration expected to grow as planned, JR is now actively expanding into engineering applications in other industries, such as oil and gas customers. After the end of the second quarter, the company received additional jobs for more than 420 million baht.
For the work obtained This involves the construction of a substation for the Thaioil project, which JR accepts from the joint venture Petrofac South East Asia, Saipem Singapore and Samsung Engineering, as well as the construction of the substation in the Mo Chit Complex building. Equipment and software for additional public and private clients.
Currently, the company has a signed order book for the end of the third quarter of 2020 at approximately 6,169.53 million baht, which will gradually receive approximately 320 million baht in the fourth quarter of this year, approximately 2,200 million baht next year. , and the rest Gradually recognize the year 66
*** Repeated at 5.50 baht / share as a reasonable price
Mr. Somphop Kirasunthornphong Director Finansia Syrus Securities Company, as financial advisor, said he was confident that JR would receive a positive response from investors. And he believes that it will be a new stock that generates satisfactory returns
The IPO price of 5.50 baht per share is a reasonable price level with solid fundamentals. And it is very interesting because the electrical system industry AND communication systems have opportunities for continuous growth From the public and private sectors in need of accelerating investment To support new technologies, etc.
*** Q3 / 63 shows a profit growth of 129.61%
For operating results in the third quarter of 2020, the company posted a net profit of 33.76 million baht, an increase of 129.61% over the same period of the previous year with a net profit of 14.70 million baht , while the total income was 464.49 million baht, an increase of 263% over the period. The same amount of revenue last year was 127.96 million baht.
Looking at the overall operating results for the 9-month period of year 20, the company had total revenue of 929.27 million baht, an increase of 45.86% over the same period last year with total revenue of 637 .06 million baht while the net profit was 63.69. Million baht, an increase of 56.25% over the same period last year with a net profit of 40.76 million baht.
*** The brokerage gives a target price of 8.8 baht / share.
Finansia Syrus Securities has been valued at 8.80 baht as JR will be the growth share of the year. The company is a construction contractor service provider. And installation of electrical and communication systems, which from the research department has a positive vision of performance in the years 63-65 that will grow exponentially
In addition, the main growth drivers are Getting a job to convert overhead power lines to underground power lines along the Pink and Yellow lines has led to the current enrollment backlog of up to 6,387 million baht, seven times the income. historical average.
The research department expects the 2065 net profit to grow by an average of 80.3% per year (CAGR) from a significant increase in revenue recognition, while margins are expected to remain well controlled.
With an estimate of the target price for the year 2016 of 8.80 baht, referring to the PEG level of 1, using the TargetPER level of 23 times (referring to the growth of the net profit of 65) and the premium of the players of the business of construction and public services. And SI players of the most outstanding 63-65 earnings growth.
*** Raised to be the top earning systems developer in ’64
Krungthai Zmico Securities Co., Ltd. estimates that the price is reasonable. JR’s shares are at 8 baht / share, based on PER19 times the normal earnings forecast, equal to 0.5x PEG, with the view that JR is the most prominent earnings growth systems contractor on the market. Year 64, due to the total portfolio of more than 6 billion baht, a record value. And capable of supporting revenue recognition for the next 3 years
Net profit is expected to grow at an average rate of 83% per annum between 63-65, from 89 million baht in 2020 to 373 million baht in 2018, especially in year 21 earnings per share will grow 2.5 times or 250. % Since the start of delivery of the Yellow and Pink Line Project
While Nomura Securities Co., Ltd. assesses JR’s base value, the year 64 target price at 7.40 baht / share, PE method 19 times. Interesting To have an order book of more than 6,000 million baht to support growth through 65 and still have the opportunity to receive additional jobs
The 2065 performance is expected to grow by 78% CAGR and good cost management, maintaining a 15% -18% gross margin and a solid financial position. And after entering the Thai Stock Exchange, cash on hand is expected to rise from 455 million baht a year ago. Support to receive additional jobs and as working capital in the future.
