The War of Car-Title Loans

The partnership joint venture between Srisawad Corporation Public Company Limited (SAWAD) and Government Savings Bank to operate the business of auto title loans at the low rate was generating a lot of buzz to the title loans market last month.  

 

A month after, the market trembled again as Bank of Ayudhya Public Company Limited (BAY) is set to list its beloved subsidiary Ngern Tid Lor Public Company Limited (NTL) on the Stock Exchange of Thailand (SET).

 

The total number of shares that will be offered is 1.05 billion baht at the par value of 3.70 baht per share. NTL is expected to be listed on the market by 2021.

 

Leading to a more intense competition among key players in the title loans market; SAWAD, Muangthai Capital Public Company Limited (MTC), Amanah Leasing Public Company Limited (AMANAH), Krungthai Card Public Company Limited (KTC), Singer Thailand Public Company Limited (SINGER) and Saksiam Leasing Public Company Limited (SAK).

 

Ngern Tid Lor is ranked as the number 3 largest title loans provider, following MTC and SAWAD and NTL’s performances in the last 3 years was very close to SAWAD.

 

In 2017, SAWAD’s earnings was 2,666 million baht, while net profit margin was 38.10%. In 2018, earnings was 2,768 million baht, and net profit margin was 35.13% and in 2019, the profit was 3,756 million baht, while net profit margin was 38.36%. 

 

Meanwhile, Ngern Tid Lor’s 2017 profit was 1,247 million baht and net profit margin was 21.50%. In 2018, the profit was 1,306 million baht and NFM was 17.26%. In 2019, NTL’s earnings was 2,201 million baht and NFM was 23.28%. 

 

Interestingly, once Ngern Tid Lor joins the SET will it be able to beat SAWAD..?