Analysts Expect JMT to Benefit from 3rd Phase Debt Holiday, Giving a TP at ฿40

JMT is expected to benefit from BOT’s debt relief measures. The consensus raised JMT’s target price to ฿40.00/share in response to the positive momentum in the cyclical debt management business, and its 4Q20 earnings were forecasted to make another new high. Meanwhile, SCB would be benefited from the remedial of the property sector.

 

Capital Nomura Securities (CNS) expects the Bank of Thailand (BOT)’s relief measures phase 3 for debtors amid a new wave of Covid-19 outbreak to benefit the consumer finance sector in the mid-to-long term, recommending investing in JMT Network Services Public Company Limited (JMT), Srisawad Corporation Public Company Limited (SAWAD) and Muangthai Capital Public Company Limited (MTC) on U-shaped recovery.

 

For the new debt relief measures, BOT has extended financial relief to individuals and retail borrowers until June 30, 2021. Credit cards and personal loans have also extended to 48 months, and maximum interest rates per year are capped at 12% for credit cards and 22% for personal loans. Meanwhile, allowed deferment of debt repayment for vehicle hire-purchase loans for three months.

 

KGI Securities has given a target price on JMT at ฿40.00/share, estimating 4Q20 performance to reach new high driven by an NLP portfolio during economic slowdown that will generate a profit once economy begins to recover.  

 

Meanwhile, Bualuang Securities projects The Siam Commercial Bank Public Company Limited (SCB) to be benefited from the aforesaid debt holiday, especially from the remedial of the property sector.