TIDLOR Continues to Decline amid High Hopes from Analysts with a TP of Bt54

The share price of Ngern Tid Lor Public Company Limited (TIDLOR) continued to trade lower for the second day in a row after making a grand opening on the first trading day with a gain of ฿9.25/share or 25.34% to close at ฿45.75/share.

 

As of 15:29 local time in Thailand on May 12, 2021, TIDLOR traded at ฿42.25/share, decreased ฿0.75/share or 1.74% with a trading value of 5,500 million baht.

 

TIDLOR rose as high as ฿55.50/share on the first trading day with an overwhelming demand and speculation on the securities. TIDLOR recorded a trading value on the first trading day at 33,265 million baht, which is lower than PTT Oil and Retail Business (OR), but is still considerably high for an IPO, reflecting its popularity among investors.

 

The company has a market share in the auto-title loan business at 25-26%, compared to MTC which takes the market share around 33-34% and SAWAD around 15-16%.

However, the business sector of TIDLOR that has the highest margin is its insurance brokerage at 21-22% in which the business contributes around 8-9% to TIDLOR’s revenue.

 

Whether the share price would continue to increase or not, it might depend on the upcoming earnings season as a guideline for investors.

Finansia Syrus Securities (FSS) recommended “BUY” TIDLOR with a target price at ฿54.00/share, expecting normalized CAGR net profit in 2021-23 to increase 31%, which will be the highest among its peers due to product innovation and omni-channel. Meanwhile, its cost to income ratio is lower than other competitors. The company also has a synergy with BAY, which is its parent company.