Equity Analysis /

TQM Corp PCL: New lending biz could become a profit growth driver

  • New business: Easy Lending Co Ltd

  • Home insurance could be the next sales growth driver

  • Strong earnings growth outlook for 2021 and…

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
21 September 2021

We are bullish over TQM’s profit growth outlook for 2021 and 2022, driven by existing products, and there’s scope for upside from a new lending biz and new products. Our earnings forecasts upsize by 2.9% for 2021 and 11.5% for 2022. Furthermore, if TQM were to acquire TQR in 1Q22, the scope for upside to our 2022 bottom-line forecast would be in the range of 3-4%. Our investment horizon rolls over to YE22 with a new DCF-derived target price of Bt154.

New business: Easy Lending Co Ltd

On Sep 15, TQM announced that the BOT approved a personal lending license for Easy Lending Co Ltd (a TQM subsidiary). It will offer loan services to TQM clients, initially to buyers of motor and non-motor policies who pay by installment—TQM currently pays interest to credit card operators on those installments; now, it will no longer need to do so. Easy Lending will offer repayment periods of three, six, and 10 months with 0% interest charged to customers.