JMT Network Services, a debt collection and management company, has revised its revenue growth target to 25-30% from 15% on rising bad loans under the first-time car buyer scheme.
"The distressed debt portfolio will definitely increase, mainly from the first-car scheme," said chief executive Piya Pong-acha.
The company plans to purchase 10 billion baht worth of distressed debt this year, with bad assets from first-car buyers making up 3 billion baht.
"We expect total bad loans for the first-car scheme this year of 13 billion baht, with JMT purchasing 3 billion baht out of the first lot," said Mr Piya.
According to the Excise Department, hire purchase loans for cars under the scheme totalled 678 billion baht for 1.25 million units.
JMT also plans to increase collection services by 10 billion baht this year in response to the higher level of distressed debt.
Since business prospects are bright, the company is revising its profit growth forecast to 50% from an earlier figure of 25-30%. The company usually has a gross profit margin from distressed assets of 80%, far higher than from debt collection services (20%).
Mr Piya said the distressed debts JMT plans to purchase are mainly in personal finance such as credit cards, car loans and leasing portfolios.
The potential to expand the business will grow through new branches at department stores and malls.
The company plans to set up a new subsidiary in June to acquire distressed debt from financial institutions.
JMT reported a net profit in 2012 of 109.83 million baht, up 64% from the year before, and will pay a dividend of 15 satang per share.
Shares of JMT closed yesterday on the SET at 20.20 baht, up one baht, in trade worth 43.99 million baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter