SAWAD gained 7% on Wednesday, buoyed by news that it will begin offering home appliance loans in 1Q22.
The share price of Srisawad Corporation Public Company Limited (SAWAD) rose THB4.25/share or 6.72% to THB67.50/share in the morning session of November 17, 2021, with a trading value of 2,023 million baht.
Maybank Kim Eng Securities (Thailand) (MBKET) has upgraded the rating for SAWAD from HOLD to “BUY” with a target price of THB74, as it expects that 4Q21 earnings to improve QoQ from higher fee income growth and lower opex. MBKET believes the negative factors of weak loan growth and low NPL coverage have been priced in and see buying opportunity after the share price fell 11% and underperformed the SET by 12% in the past 2 months.
SAWAD targets to offer HP home appliance loans in 1Q22 and to have a THB10 billion loan portfolio by 2026 or THB2 billion pa in the next 5 years.