The share price of Tisco Financial Group Public Company Limited (TISCO) jumped ฿2.50/share or 3.80% to ฿68.25/share at the opening bell with a trading value of 289 million baht despite profit in 3Q20 dropped 14.21% to 1.6 billion baht, the reported net profit for the quarter was better than what analysts had expected to be around 1.3 – 1.4 billion baht.
KGI Securities has given an “Outperform” rating on TISCO with a target price of ฿94.00/share.
TISCO reported 3Q20 earnings of Bt1.6bn (+21% QoQ, -14% YoY). The result was around 22% above our forecast and the market consensus due to higher than expected revenue growth. The company 9M20 earnings were Bt4.4bn, accounting for 79% of KGI full-year forecast. With an even high Tier I ratio of 18%, TISCO will be able to pay a high dividend as usual. KGI assumes a payout ratio of 85% and dividend of Bt6.00/share, implying a yield of 9%. TISCO remains KGI’s top pick in the sector.