บทวิเคราะห์ (Research)

THANI : Earnings Result - Weak Result We have a negative view on 3Q24 net profit of Baht 80 million, significantly below our expectations due to higher-than-expected impairment costs for repossessed vehicles and provisions (ECL). Net profit decreased -68% y-y and -69% q-q due to i) a decline in total revenue, both from new loan disbursements and insurance sales ii) an increase in expenses, both from impairment costs for repossessed vehicles and provisions. We saw asset quality continues to weaken with NPL Ratio increasing sharply to 3.80% from 3.41% in 2Q24, due to uncertainty in economic recovery. We revised down our 2024-26F net profit by -(15-26)% due to higher-than-expected expenses. This affects our TP25F which is adjusted down to Baht 1.5 . We maintain our REDUCE recommendation because the truck hire purchase market continues to face weak asset quality and risks from Chinese capital inflow. We expect credit costs and NPL Ratio to remain high, affecting overall loan growth.