Equity Analysis /
Thailand

Ngern Tid Lor: Don’t judge TIDLOR by its peers

  • Topic 1: Loan growth in the face of intensifying competition

  • Topic 2: Insurance premium sales growth

  • Topic 3: Interest rates, inflation, and regulatory risks

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
29 November 2022

We will host a virtual conference on Dec 6, 2022 (13:00-14:00) for local investors with TIDLOR executives. The event will provide insights into how the company plans to build value and earnings going forward. Please join us!

Topic 1: Loan growth in the face of intensifying competition

Demand among non-bankable credit markets should sustain loan portfolio growth for years ahead. The drivers for the mid-term are sales-point expansion in tandem with TIDLOR’s cashcard service and digital platform. It has invested heavily in its online platform for several years; we do not expect any current competitors to catch up in the foreseeable future—the cashcard service would be particularly difficult for a non-bank finance player to replicate. The company currently has a high yield for its motorbike title loan business of 23% (its competitors have much lower yields ranging 12-16%). As competition intensifies, newcomers with low funding costs or/and IT platforms could potentially become serious challengers to TIDLOR’s position.