SINGER Jumps 12% to ฿16.70 as Loan Portfolio Expects to Double the Size to ฿4Bn!

The share price of Singer Thailand Public Company Limited (SINGER) jumped ฿1.80/share or 12.08% to ฿16.70/share with a trading value of 488 million baht as of 15:42 local time in Thailand (GMT+7) on Thursday.

 

In early September, TRIS Rating affirms the company rating on Singer Thailand PLC (SINGER) at “BBB-” and revises the outlook to “stable” from “negative”. The outlook revision reflects SINGER’s improved asset quality, revenue stability, and earnings quality.

 

Krungsri Securities has given a “BUY” recommendation on Singer Thailand Public Company Limited (SINGER) with a target price at ฿17.40/share.

KSS stated that the sales of electrical appliances grew as SINGER has sales teams nationwide. Car title loan business registered strong growth as loan portfolio has more-than-double in size from Bt1.5b at end-2019 to Bt3-4b in 3Q20.

 

Meanwhile, KGI Securities has given an “Outperform” rating on Singer Thailand Public Company Limited (SINGER) with a fair value at ฿17.00/share.

KGI initiated its coverage on SINGER with an “Outperform” rating, stating that it operated two business lines: i) selling and leasing/HP home electrical appliances (80% of revenue), and ii) title loans for large vehicles. Its  loan portfolio of Bt4.4bn consists of Bt1.9bn in title loans and Bt2.5bn in leasing home electronic appliances.

KGI assumed loan volume growth of 50%/30%/20% in 2020/2021/2022 to boost earnings given stable loan yield and credit cost. Risk to our forecast is based on provisioning expense. Thus, KGI assigned P/E at 16x, on par with its long-term average, reaching a 2021F fair value of Bt17.00.