Analyst Sees Positive on KTC’s Krungthai Leasing Deal, Targeting to Revise Up Earnings-TP

Analyst Sees Positive on KTC’s Krungthai Leasing Deal, Targeting to Revise Up Earnings-TP

Following the acquisition of 75% stake in “Krungthai Leasing” by Krungthai Card Public Company Limited (KTC) from Krung Thai Bank Public Company Limited (KTB) with a price per share of 7.92 baht which is equivalent to the total amount of 594,396,000 baht, KTBST Securities (KTBST) was positive toward this transaction, assessing that KTC has such a potential to acquire Krungthai Leasing due to a sufficient available cash on hand of 1.9 billion baht as of the end of 2020. The transaction shall complete within May, 2021.

 

KTBST expected the Krungthai Leasing deal to provide KTC an opportunity to expand comprehensive financial services, particularly hire purchase, leasing and motor vehicle loans, and would generate an upside of 1-2% per year between 2021-2022 under loan growth rate projection at 10% per annum, in which align KTC’s target.

 

In addition, KTBST stated that there is a tendency to revise up KTC’s earnings forecast and target price after the analyst meeting scheduled for February 15, 2021.

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