JETCON Post Strong Q2 and 6M Earnings, a U-Turn From Last year.

  • Jetcon Corporation Limited (JETCON) reported earnings of J$33.15Mn for the second quarter ended June 30, 2025 (Q2 2025), a turnaround from the net loss of J$6.12Mn in Q2 2024. The increase came against the backdrop of stronger revenue performance.
  • Revenues for the quarter more than doubled to J$277.36Mn, (106.4% or J$117.23Mn year-over-year). The company noted that it continues to reap the benefits of exiting the used car market and focusing purely on New Cars and Solar. It has also benefited from increased demand due to heightened brand awareness after showcasing four vehicle models at the Jamaica Auto Show in May.
  • Jetcon, which pivoted from selling used cars to focusing on new vehicles, now offers a range of BAIC models, including the Beijing X55, which is a compact SUV competing directly with similar makes such as the Toyota Rav4 and Honda CR-V. It also sells the BJ40, which is a rugged off-road SUV. Smaller, budget-friendly options, such as the X35 and BJ35, are also among the line-up of vehicles.
  • In line with the increase in revenues, direct expenses also rose by 74.3% to J$162.17Mn; however, with revenue growth outpacing direct expenses, gross profits increased 3-fold to J$65.19Mn, and its gross margin doubled from 14.6% to 28.7%. This allowed JETCON to reverse an operating loss of J$6.12Mn to an operating profit of J$33.15Mn, despite a 46.7% increase in operating expenses. Consequently, operating margin moved from -5.6% to 14.6%.
  • Jetcon’s Q2 results, coupled with solid performance in Q1 2025, contributed to its strong performance for the six-month period (6M 2025). 6M 2025 revenue rose to J$423.75Mn, up from J$246.57Mn for 6M 2024. Gross profit also increased by 153.9% to J$101.99Mn, despite direct expenses increasing by 55.9% to $J321.76Mn and the gross profit margin improved by 778bps to 24.1%. Overall, for the first half of the year, Jetcon’s net profit amounted to $41.85Mn, an increase from a net loss of J$7.00Mn in the comparative period.
  • As at the close of trading on Tuesday, Jetcon shares closed at J$2.04, reflecting a 92.3% year-to-date increase. At this price, the shares trade at a P/E of 47.44x, which is above the Junior Market Distribution Sector Average of 32.48x.

(Sources: NCBCM Research & JETCON Financial Statements)