MTC-SAWAD Jump as Analysts Expect Loan Business to Continue Growing in 2H21

The share price of MTC and SAWAD surged in the morning session on May 25, 2021, as business direction in 2H21 expected to grow continuously.

 

As of 11:18 local time in Thailand, MTC rose ฿3.00/share or 5.06% to ฿62.25/share with a trading value of 720 million baht.

SAWAD gained ฿2.75/share or 3.74% to ฿76.25/share with a trading value of 1,077 million baht.

 

LH Securities stated that Muangthai Capital Public Company Limited (MTC)’s 1Q21 earnings were at a good position after making a record high for a quarter, considering the first quarter was a low season.

2Q21 earnings were expected to continue making a record high as the number of loans in April to May grew significantly, especially the motorcycle loan business that kicked off since January this year with a returning yield of 24%. Meanwhile, the company has good management in NPL at lower 1%.

LH Securities expected MTC earnings in 2021 to grow 15% ROE 26%, reflecting the highest profit return among its peers, giving a support level at Bt56/57 and a resistance level at Bt62/63.50. LH Securities gave a “BUY” recommendation with a target price at Bt78.00 per share.

 

Asia Plus Securities (ASPS) has given a “BUY” recommendation on Srisawad Corporation Public Company Limited (SAWAD) with a target price at ฿95.00/share.

ASPS expected SAWAD’s core business to grow continuously in 2021, especially on the loan business in 2H21 after more distribution of Covid-19 vaccine to bring back economic activities.

ASPS stated that the share price rebased for more than 22% in the past month and already priced in the high competition in the industries.