Special Report – JUMP+ Navigates Thai Capital Market Crisis with Three-Year Plan to Revive Listed Companies and Restore Investor Confidence
Thailand's JUMP+ initiative is a three-year program targeting 180 listed companies to boost governance, sustainability, and profitability as the nation's capital market faces record low IPO activity and massive investor outflows. The plan a
Amid intense pressure on Thailand's capital market from capital outflows, weakening stock performance, and IPO activity at a 20-year low, the "JUMP+" initiative has been launched as a three-year strategic program to enhance listed companies' business operations, governance, and sustainability. The program aims to restore global investor confidence.
Key Challenges to Address
Sarawit noted that Thailand's capital market faces severe pressure from investor outflows, causing continuous declines in market value and stock indices despite slight recovery at year's beginning. Initial public offerings (IPOs) have slumped significantly, hitting a 20-year low and reflecting deteriorating confidence among both issuers and investors. Additionally, structural problems plague many listed companies, including low return on equity (ROE) and undervaluation relative to potential, with unfavorable price-to-earnings (P/E) and price-to-book (P/B) ratios dampening investor interest in Thai capital markets.
Value-Addition Model
The Stock Exchange developed "JUMP+" based on a Korean model to reduce the corporate discount—the gap between actual and potential company values—focusing on major enterprises. Participating companies number 180, representing only 7% of listed firms but accounting for 45% of market capitalization. Results show the program has successfully attracted foreign investment back into the market, boosting market indices and valuation metrics including P/E and P/B ratios since launch, aided by other factors such as AI trends and capital inflows.
JUMP+ Structure: Three Principles, Three Plans
The JUMP+ program operates on three key principles: Growth (emphasizing companies with expansion potential and commitment), Visibility (promoting disclosure of business plans, operational results, and investor communication), and Incentive (supporting company operations across various dimensions).
Participating companies must develop three-year JUMP+ plans (2026-2028) approved by their boards:
1. Business Plan: Targets company value enhancement by 2028 with comprehensive strategic plans 2. Governance Plan: Covering board structure and qualifications, oversight of accountability and transparency, and human resource and risk management oversight 3. Climate Action Plan: Addressing greenhouse gas management
Participant Profile: Small but Ambitious
Unlike Korea's program, Thailand's JUMP+ targets mid-sized and small companies. Among 143 participating firms—87 from SET and 56 from mai—analysis reveals:
– Approximately 78% have market capitalizations below 5 billion baht – About 60% show ROE below 10%, below their cost of equity, indicating returns below shareholder costs – More than half have P/E ratios below 10 times and P/B ratios below 1, reflecting significant valuation discounts with substantial growth potential
Participating companies have committed to profit growth targets of at least 50% over three years, demonstrating management determination.
Disclosure-Based Approach: Platform for Investor Decision-Making
JUMP+ operates on disclosure-based principles, using information transparency as its foundation while letting investors make their own decisions.
