Vayupak Books Additional 200Mn Shares of TMB, Analysts See Outstanding Performance in 2Q

Vayupak Fund 1 purchased an additional shares of TMB Bank Public Company Limited (TMB) up to 2,000,000 shares in total, meanwhile analysts expected TMB’s to report an outstanding operation among stocks in bank group, posting 2Q20 core profit of 3,000 – 4,000 million baht or to surge by 60 – 106%, and gave a target price at ฿1.30/share.

 

The source close to the matter revealed that the meeting of Vayupak Fund 1 (VAYU1) last week has report the result for purchase of additional approx. 200 million equities of TMB or representing an investment of approx. 200 million baht. The objective of this acquisition is to maintain status as the 2nd major shareholder as Thanachart Capital Public Company Limited (TCAP), the 3rd major shareholder, also plans to further purchase TMB’s stocks.

 

As of July 9, 2020, ING Bank N.V. is the major shareholders of TMB by holding 23.03%, follows by Ministry of Commerce and Vayupak Fund together in the proportion of 22.01% and TCAP as the 3rd shareholders by holding 20.12%. 

 

DBS Vickers Securities (DBSVS) has analyzed 7 bank stocks, expecting to report a 2Q20 core profit of 28.8 million baht, decrease by 32.5% year-on-year, while foreseed TMB to be the only bank that could boost the profit growth from a year earlier, supported by its merger with Thanachart Bank Public Company Limited (TBANK) since December 2019.

 

Phillip Securities (Thailand) maintained a “BUY” recommendation on TMB with a target price of ฿1.30/share and expected to post 2Q20 core profit of 4,000 million baht, a 106.9% rise from a year ago after the bank merged with TBANK, which will enhance its revenue in every aspects. However, analyst as well expected the core profit in 2Q to fall by 4.8% quarter-on-quarter due to a higher allowance and an interest income slowdown. 

 

Trinity Securities extimated TMB’s 2Q20 profit to hit 3,117 million baht increases 63% year-on-year. Expected a weak in net interest income as net interest margin (NIM) got pressured by policy rate cut. Trinity Securities gives a target price of ฿1.28/share.

 

Meanwhile CGS-CIMB Securities (Thailand) Co., Ltd. expected TMB’s to report a 2Q20 core profit of 2,895 million baht, to rise by 51% from a year eariler.