JWD confident of strong growth performance in H2/2022 With investment advancing as planned, revenue to hit B10 billion in 2025

Economy News Tuesday September 27, 2022 10:10 —PRESS RELEASE LOCAL

JWD confident of strong growth performance in H2/2022 With investment advancing as planned, revenue to hit B10 billion in 2025

JWD InfoLogistics Public Company Limited (JWD) expressed confidence of its strong growth performance in H2/2022 following the good overall business performance in Q3/2022 that signaled the recovery of the automotive warehousing and management business after more jobs were forthcoming from manufacturers of electric vehicles while the barge terminal business has seen an increase in workload. Moreover, steady progress has been made in regard to the business expansion under the strategic plan to reach 10 billion baht in revenue by 2025, and to reinforce the business concept of "Think Everything Logistics" DNA.

Mr. Charvanin Bundikitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD Pcl. (JWD), ASEAN's recognized expert in logistics and supply chain, announced that he was confident that the Company's H2/2022 performance will continue to show impressive growth as the business operation from July up to the present has been satisfactory, particularly in August when the automotive warehousing and management business has shown clear sign of recovery compared to the second quarter, following the increased logistics workload for electric vehicle (EV) manufacturers that have contributed to increased revenue and improved initial profit of this particular branch of business. At the same time, the barge terminal business has been able to ramp up to full service for the customers, and the amount of monthly workload has been higher than the first half of the year after the machinery have been repaired. Where the general warehouse business is concerned, such as the warehouses in the free zone at Laem Chabang Port that at present are fully utilized, while the hazardous goods warehousing is expected to increase the earnings compared to the previous year.

Moreover, the Company has realized revenue from new cold storage facilities that have been gradually opening for business, namely, PACM Cold Storage which is a joint venture with MMP International Company Limited that covers a storage area of 10,800 square meters and capable of storing 20,000 pallets. Presently, the rental space is fully utilized after only 3-4 months of operation. Another facility is PACS cold storage facility in Saraburi Province that has just been launched on August 8 (8.8) with a total storage space of 8,000 square meters and capable of storing more than 11,000 pallets. This facility is installed with the Automated Storage & Retrieval System (ASRS) to support the storage operations and cargo management which will also help to cut down on the recruitment of additional personnel.

Where the self-storage business in concerned, the Company is in the process of drawing up an expansion plan together with business partner Central Pattana Public Company Limited, and also in regard to Fuze Post, a joint venture with Thai Post and Flash Express in the business of express delivery of temperature-controlled merchandise. This business in expected to boost its revenue continuously. Also significant are businesses in foreign countries, such as the food service business in Taiwan that has been making constant profit this year, while the business in Cambodia is expected to realize revenue from the sales of land in the industrial estate.

At present, the Company is in the process of business negotiation and an agreement is expected to be reached within the last quarter of this year. The Company has also put in place a plan to mitigate the repercussion from the price of fuel oil which remains high today. One solution is to procure a fleet of electric-powered transport trucks with 10 trucks to be purchased in the first phase of the plan. Even so, the Company has put conditions in the contracts with its business partners to increase the transportation cost in case the oil prices in the market take an upturn. As for the minimum wage increase policy, the impact on the Company is expected to be minimal, as the Company is already paying wages that are higher than the proposed new minimum wages. Therefore, the company management is confident that this year's revenue will be at least 6 billion baht, or a growth of about 15 percent over that of the previous year, as targeted.

The Chairman of the Executive Committee and CEO of JWD said that the business expansion plan under the 5-year strategic plan (2021-2025) puts the revenue target at no less than 10 billion baht, a two-fold growth, and to increase the net profit margin to 15 percent. Currently, the progress has been moving according to plan under the five main strategies: (1) Acquisition and expansion of the freight forwarding business to become a multimodal transportation logistics service provider, such as the acquisition of VNS Transport Company Limited (VNS) in the previous year; (2) Expansion of cold storage business into provinces with high potential; (3) Expansion of businesses in foreign countries with the focus on Vietnam, Cambodia and Indonesia; (4) Expansion of B2C (Business to Customer) business, including self-storage rental business, order fulfillment business (online warehouse management) to meet the expansion of e-commerce and social-commerce business along with the expansion of "Last Mile Delivery" business to provide efficient delivery services from warehouses direct to end-customers; and (5) Expansion of businesses through joint ventures, such as the establishment of "Alpha Industrial Solution" joint venture with Origin Property Plc. to expand the integrated industrial real estate business. At present, the joint venture has developed a cold storage warehouse and temperature-controlled general warehouse in Bangna Km.22 area, and has a plan to further invest in two new projects in Bangna Km.19 and Rangsit areas.

Over the next one to three years, logistics and supply chain businesses will have to compete in the areas of service diversity and cost control. Therefore, the Company will continue to expand the businesses and to continuously invest in technology to upgrade JWD to be the "Smart Green Logistics", such as the investment in robotics in warehouse and cold storage businesses to reduce the need to recruit new workforce, the investment in IT solutions to manage supply chain information, and the investment in energy-saving and environmentally friendly technologies, etc.

"The continuous growth throughout the years underscores our capability for rapid adaptation to cope with various factors and the constant business development and the continual introduction of new services, especially the businesses that are considered to be in the growth trend group, with the courage to venture into new fields to be in line with the Company's DNA of 'Think Everything Logistics', which means that every breath that the personnel take is 'logistics', under the new slogan 'Because logistics is not just a thought, but it's our life'," added Mr. Charvanin.

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