Krungthai Card PCL: Profit was in line with our model

KTC’s share price has shot up to 49% above our YE21 target price, pushing its 2021 PER up to 29x (2.5SDs above its long-term mean). Hence, we maintain our SELL call.

Profit was in line with estimate

KTC posted 1Q21 earnings of Bt1.6bn, flattish YoY and up 23.6% QoQ. The result was 10% above the Bloomberg consensus, but was in line with our projection. Pre-provision operating profit was Bt2.4bn, down 5% YoY but up 4% QoQ. Earnings for 1Q21 comprise 25.0% of our full-year forecast of Bt6.5bn.