Equity Analysis /
Thailand

Muangthai Capital PCL: Competition and cost pressures ahead

  • What is MTC’s forward strategy?

  • What about MTC’s competitors?

  • 4Q22 earnings forecast to rise YoY and QoQ

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
24 November 2022

MTC is building its loan portfolio through sales-point expansion; its competitors are upgrading technology and offering new products and services. Hence, we expect slower long-term profit growth for MTC going forward.

What is MTC’s forward strategy?

Given strong demand among non-bankable credit markets, we expect MTC’s loan portfolio to build further (its targets are a range of 30-35% for 2022 and 20% for next year), led by ongoing sales-point expansion across Thailand (the finco plans to add 700 sales points in 2022 and 700 during 2023). It had 3m clients at end-Sep 2022, up from 2.6m at YE21. MTC expects to win business with low-yield title loans-for-motorbikes (a 16% interest rate) in competition with Fast Money Co Ltd (a JV between SAWAD and the Government Saving Bank).