JKN rises 11.76% on hemp high

Thanin Srisethi, chief executive of DOD Biotech, centre right, and Teeraphat Petporee, chief financial officer of JKN, centre left, at Tuesday’s MoU signing between the two companies.
 

JKN Global Media’s (JKN) share price surged 11.76% to close at 11.40 baht on Tuesday following the news of its memorandum of understanding (MoU) with DOD Biotech (DOD) to develop hemp-infused supplement and cosmetic products and take over 24-hour airtime on News 18 TV channel to sell the products.

An analyst at KTBST Securities (KTBST), who requested anonymity, expects JKN’s earnings in 2020-22 will continue to grow above 18% annually, with an upside in its 2021 revenues from sales through News 18 and 2022 revenues from hemp products.

KTBST anticipates JKN will record net profit of 375 million baht in 2021, a growth of 20% from 2020.

In cooperation with Siam Herbal Tech, a subsidiary of the SET-listed DOD, which is the first listed firm licensed to import hemp seeds, JKN has a chance to be among the first manufacturers of hemp-blended products, the analyst said.

In addition, the News 18 airtime will be an extension of JKN’s contracted airtime with the channel, which will increase ad revenues from JKN’s news programmes and others as well as expand the distribution channel of JKN products from the existing online channel.

DOD signed an MOU with JKN Health and Beauty, a subsidiary of JKN, on Tuesday to collaborate on the development of a supplement formulation containing hemp extract.

Through this MOU, DOD will be responsible for R&D of 10 products to be distributed by JKN Health and Beauty.

The companies expect the development of the products will be finished within this year and believe products will meet demand from both domestic and international consumers.

Jakkaphong Jakrajutatip, chief executive officer of JKN, revealed that the company sees a business opportunity to develop innovative food supplements and beverages that use hemp extract.

JKN’s strengths are its marketing expertise and good understanding of various consumers’ behaviours and needs, she said.

“Based on our success in the past, JKN’s dietary supplements have been well-received by customers and saw sales grow dramatically. We are confident that food supplements and beverages containing organic real hemp extract from JKN will also succeed,” she said.

JKN struck a deal with News 18 to carry out its exclusive New Normal Distribution plan that will allow JKN to sell products through all of the channel’s distribution channels, including online platforms that will allow customers to place orders 24/7, she said.

DOD rose 3.15% on Tuesday on the SET to close at 13.10 baht.

ที่มา : W3Schools