Investors Pour MTC to -6% as 1Q19 Profit at ฿1,005M. Grows Lower than Consensus

Investors discarded MTC, caused the share to plunge 6% as its 1Q19 profit at THB 1,005 million grew lower than consensus.

The share price of Muangthai Capital Public Company Limited (MTC) declined ฿3.00/share or 5.88% to ฿48.00/share at 10:50 in the trading session on Wednesday, May 8, 2019. The highest price was ฿48.75/share and the lowest was ฿46.75/share.


MTC has reported its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

MTC recorded a net profit in the first quarter of 2019 at THB 1,005 million, increased 20.60% from the same period last year. The increase in profit was due to the new loan amounted THB 25,028 million, increased 48.31% YoY. The loan receivable as of March 31, 2019 was THB 50,592 million, grew 33.09% YoY.

Moreover, the number of the branch as of March 31, 2019 was 3,444, increased by 165 branches from December 31, 2018. While non-performing loan ratio in 1Q19 was 1.04%, improved from 1.29% YoY and 1.12% QoQ, mainly due to the intensive debt collection and monitoring the lending process.

KGI Securities (Thailand) asserted that the profit growth in the first quarter of 2019 was as expected, but still 5% below the consensus. KGI maintained its earnings forecast and target price of ฿52.00/share, based on PE of 23.5x, giving Outperform rating, but prefer to buy on share price weakness.