SET-listed Jay Mart, a major IT product distributor, expects average annual revenue growth of 50% over the next three years driven by its strength in commerce, finance and technology, along with a foray into the metaverse.
The company said it earmarked 30 billion baht for investment this year, 8 billion of which is to establish several joint ventures to scale up the customer base.
The move aligns with Jay Mart's strategy to transform its business from an investment holding firm to a tech investment holding company. The firm projects its market cap to reach 527 billion baht in 2024, up from 295 billion forecast for this year.
Jay Mart chief executive Adisak Sukumvitaya said the company's strong growth projection results from fresh capital of 30 billion baht from the investment by BTS Group Holdings last year through its two subsidiaries -- VGI Plc and U City Plc.
"We have proven ourselves by registering year-on-year revenue growth of 50% in 2020 and 55% in 2021, despite the pandemic," he said.
"The company is transforming from an investment holding firm to become a tech holding force with the belief that technology will be able to drive business to the next level and support exponential growth."
Mr Adisak says the company proved itself the past two years.
Jay Mart has about 7 million customers and BTS has 10 million customers. Business synergy between the two firms will create a large business ecosystem, Mr Adisak said.
"That is why we plan to invest a record 30 billion baht this year," he said.
The firm's growth strategies chiefly involve commerce, finance and the technology sector, said Mr Adisak.
Jay Mart wants to foster strategic joint ventures involved with debt collection, wellness residential projects and renewable energy, while looking for growth in the Jaydee Group, a partnership business with electric appliance dealers. The company also has a metaverse project.
"The food business also has potential we want to explore, looking to tap into a customer base and boost our business ecosystem," he said.
According to Mr Adisak, the country's bad debt has soared to 2 trillion baht because of current economic woes, which presents an opportunity for subsidiary JMT Network Services Plc and its non-performing debt management business.
JMT aims to set up two joint ventures with Kasikornbank to operate in the debt collection and asset management businesses.
"The joint ventures will increase JMT's new debt portfolios and customers while lowering operational costs," said Sutthirak Traichira-aporn, chief executive of JMT.
Thanawat Lertwattanarak, chief executive of J Ventures, Jay Mart's subsidiary handling software development, said the firm plans to launch JR Verse, a metaverse platform where brands can sell their products and services while capitalising on utility token JFin coins and non-fungible tokens. Participants can join in the form of an avatar.
There are virtual shops in the first phase of the project, he said.
"We are starting with Jay Mart business first, then expanding to other business partners," said Mr Thanawat.
JR Verse plans to invest US$1-2 million initially to deliver a full immersive experience for users within two years, he said.
Narathip Wirunechatapant, chief executive of Jaymart Mobile, the handset distribution arm of Jay Mart, said group business synergies resulted in growth of almost 20% for Jaymart Mobile revenue in 2021.
The firm aims to increase the number of Jaymart IoT shops, which focus on lifestyle gadgets, from 20 to 40 by the end of this year. Digital Café outlets, which blend Casa Lapin coffee shops with Jaymart IT stores, are forecast to grow from 2 to 10 this year.
Jaymart Mobile targets revenue growth of 50% with net profits doubling this year, he said.