SAWAD increased by 2.42% or increased by 1.25 baht to 53.00 baht, the purchase price was 250.92 million baht at 11:19) from the opening price of 52.00 baht, the price highest 53.50 baht, the lowest price 51.75 baht.
Trinity Securities stated in the analysis that In the second half of the year, the management of Srisawad Corporation Plc. (SAWAD) expects loan income to grow. due to the income of Srisawad Capital Public Company Limited (SCAP) it will be recorded for full quarters in 3Q22 and 4Q22 (2Q22, only recorded in May and June) .NPLs will decrease as the port grows as the company will control net NPLs to remain unchanged. and will not cancel the provision like last year (the provision is expected to increase by 30-50 bps in 3Q22 and 4Q20)
Although management believes lease interests are controlled, SAWAD would benefit as it could cut local competitors. (Currently, local competitors account for around 40 percent of the market) and I see that regulating interest rate on installment purchases is a sensitive issue as it will prevent around 20 million people from accessing motorcycles. and other types of vehicles.However, management has already prepared a plan to address if interest rate control is real.
SAWAD announced a 2Q22 profit of 1,042 million baht, a decrease of 64 million baht -5.83% YoY, + 0.55% QoQ with NPL to 2.59% (from 3.05% in 1Q12 and since 4.28% in 2Q21), which is a clear downward trend in NPL ratios since 2Q21 (-65.3% Y / Y) Portfolio Growth + 26.7% Y / Y, + 13.1% Q / Q , mainly driven by installment loans at 9,532 million baht (+ 231% yoy, + 61.3% Q / Q)
Mr. Wichit Phayuhanaveechai, SCAP’s Chief Executive Officer, revealed that the Company’s outlook for the second half of the year continued to be a good direction. and is confident that it will be able to issue new loans at the 11 billion baht level as planned. And the company still considers credit quality a priority. The goal is to keep the total NPL level no higher than 2%.
“The first half of the year This is a huge leap forward for ESCAP in terms of both revenue and net profit. Because we can do the equivalent of 64 work in just six months. Therefore, the second half of the year still represents a brilliant opportunity for the business due to the prospects for economic recovery. or even a more pronounced easing of the COVID situation. Therefore, the overall business outlook remains as expected. “
Mr. Wichit said
In this regard, the progress of the merger between Srisawad Finance Public Company Limited (BFIT) and SCAP where BFIT is in the process of requesting the return of its financial asset license. and the application for a personal loan business license under the supervision of the Bank of Thailand. The company expects the merger process to be completed as planned in the third quarter of this year.
2Q22 operating results The company recorded a net profit of 174.38 million baht, an increase of 73.07% compared to the same period of the previous year, while revenues were 892.95 million baht, with a increase of 198.61%. Additionally, the company has partnered with partner resellers across the country. thus helping to support greater credit issuance.
Meanwhile, personal loans saw increased demand after the government eased COVID measures. As a result, customers can consider paying in installments. As a result, there has been a significant increase in loan applications.
For the first six months of the year 65, a net profit of 310.64 million baht was recorded, an increase of 140.79% compared to the same period of the previous year. Net profit was almost equivalent to year 64 net profit. Revenue was 1,415.22 million baht, an increase over the same period of the year before of 187.23%, also breaking the record of 64-year income.
By InfoQuest News Agency (17 Aug 65)
tag: SWAAD, Srisawad Corporation, Thai stocks
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