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.