The share price of MTC and SAWAD surged in the morning session on May 25, 2021, as business direction in 2H21 expected to grow continuously.
As of 11:18 local time in Thailand, MTC rose ฿3.00/share or 5.06% to ฿62.25/share with a trading value of 720 million baht.
SAWAD gained ฿2.75/share or 3.74% to ฿76.25/share with a trading value of 1,077 million baht.
LH Securities stated that Muangthai Capital Public Company Limited (MTC)’s 1Q21 earnings were at a good position after making a record high for a quarter, considering the first quarter was a low season.
2Q21 earnings were expected to continue making a record high as the number of loans in April to May grew significantly, especially the motorcycle loan business that kicked off since January this year with a returning yield of 24%. Meanwhile, the company has good management in NPL at lower 1%.
LH Securities expected MTC earnings in 2021 to grow 15% ROE 26%, reflecting the highest profit return among its peers, giving a support level at Bt56/57 and a resistance level at Bt62/63.50. LH Securities gave a “BUY” recommendation with a target price at Bt78.00 per share.
Asia Plus Securities (ASPS) has given a “BUY” recommendation on Srisawad Corporation Public Company Limited (SAWAD) with a target price at ฿95.00/share.
ASPS expected SAWAD’s core business to grow continuously in 2021, especially on the loan business in 2H21 after more distribution of Covid-19 vaccine to bring back economic activities.
ASPS stated that the share price rebased for more than 22% in the past month and already priced in the high competition in the industries.