Earnings Report /
Thailand

Muangthai Capital PCL: Profit in line with our estimate

  • Result was in line with our estimate

  • MTC posted a 1Q22 bottom-line of Bt1.38bn

  • Gross loans grew by 7.4% QoQ and 34.1% YoY in 1Q22

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
11 May 2022

We have a BUY call on MTC, premised on strong business and earnings growth (even though our model points to a slimmer YoY NIM for 2022). And the stock is cheap (the price has dived 22% since YE21)—a YE22 PBV of 3.3x (1.5SD below its long term mean of 4.6x) and a 2022 PER of 16.5x (0.8SD below its long term mean of 19.5x). BUY!

Result was in line with our estimate

MTC posted a 1Q22 bottom-line of Bt1.38bn, flattish YoY but up 25.0% QoQ. The result was in line with our estimate, but was 10.6% ahead of the Bloomberg consensus. Pre-provision operating profit came to Bt1.9bn, up by 0.7% YoY and 17.9% QoQ. 1Q22 earnings comprise 23.4% of our full-year forecast of Bt5.9bn.