A sudden change in conditions for a joint venture between Thai government and private lenders to establish an asset management company causes the latter to get back and rethink their moves on this agreement.
The new condition has been changed to allow the Government Saving Bank (GSB) to hold 60% shareholding in this JV, up from 50% in the earlier report. Candidates to join this joint venture are expected to be announced later this month at GSB’s Board of Directors meeting. Bangkok Commercial Asset Management Public Company Limited (SET: BAM) is one of the top candidates to win this round.
However, if the Board committee could not agree on the resolution, the decision to establishment could be delayed further.
Yuanta Securities stated that it has a slight negative sentiment on the delayed establishment of JV AMC, and that could pose a short-term pressure to BAM. It is expected that the JV AMC will start generating profit after 2-3 years from the NPL transfer from GSB.
Yuanta added that BAM’s share price is hitting its upside limit from the fair value of THB9.70 per share. However, an outstanding 1Q24 results could give its share price a push. The analyst sees that a drop in share price could be an opportunity to accumulate for speculation on the 1Q24 performance.
