SAWAD Targets a 20% Growth in 2021, Analysts Raise as Top Pick, Recomm. “BUY” at ฿74

SAWAD is confident that the revenue this year will grow by 20% after restructuring the organization for sustainable growth. SAWAD is also ready to compete as the company has a strong financial position.

 

The Managing Director of Srisawad Corporation Public Company Limited (SAWAD), Miss Doungchai Kaewbootta, stated that the company expected the joint investment with Government Savings Bank in Fast Money to offer car title loans at low interest rates will enable SAWAD to reach new customers.

 

The campaign is scheduled to launch within March, 2021, and will mainly focus on retail customers first.    

 

“SAWAD is completely ready for business expansion. At present, the overall Thai economy is gradually showing a sign of recovery as well as the Covid-19 situation that already improved following the soon-to-rollout vaccination campaign. And once the coronavirus is available, SAWAD will launch a new loan package to stimulate the economy.” said Miss Doungchai. 

 

Capital Nomura Securities (CNS) is positive toward the partnership with Government Savings Bank, believing the joint investment in Fast Money will reduce SAWAD’s regulatory risk, at the same time will expand the loan distribution channel.

 

KGI (Thailand) Securities (KGI) maintains a “BUY” rating on SAWAD with a target price of ฿71.00/share, picking as top pick in the Consumer Finance sector.

 

KTBST (Thailand) Securities (KTBST) also recommends “BUY” on SAWAD, but raising a target price to ฿74.00/share from ฿67.00/share and 2021E PBV multiples re-rate to 4.2x, which implies -0.5 SD below its 5-year average, from 3.9x to reflect the brighter earnings growth outlook, particularly from the partnership with Government Savings Bank.