MTC to Show a Counter-Trend Growth, Analyst Recomm. “BUY” at TP of ฿66

Muangthai Capital (MTC) to show a counter-trend growth, expecting 2020 core profit to hit 5.1 billion baht, a 20.9% increase, mainly due to a low expected credit loss and a continuous loan growth with NPL ratio of 1.05% decrease 1.18% YoY. Analyst has given a target price at ฿66.00/share.

 

ASL Securities has chosen Muangthai Capital Public Company Limited (MTC) as a top pick among its peers (finance sector), expecting the profit growth to continue as the balance sheet likely to continuously grow at levels of 16% CAGR in 2020 – 2022, reflecting an outstanding profit potential among the finance sector, therefore ASL has given a top pick rating to MTC.

 

Analysts believe MTC’s outlook is bullish on growth in the second half of 2020 and maintain its forecast loan growth of 20.3%. While estimating 2020F net profit of 5.1 billion baht, a 20.9% increase compared to a year ago. For the 2020 – 2022F, ASL expects net profit to expand 16% CAGR annually. Recommend “BUY” on MTC and revised a target price to ฿66.00/share.