On Wednesday at 10:46 AM (Bangkok time), the share price of Muangthai Capital Public Company Limited (SET: MTC) jumped by 3.09% or THB 1.25 to THB 41.75, with a trading value of THB 397.14 million.
Srisawad Corporation Public Company Limited (SET: SAWAD) increased by 3.42% or THB 1.00 to THB 30.25, with a trading value of THB 125.94 million.
SG Capital Public Company Limited (SET: SGC) edged up by 0.82% or THB 0.01 to THB 1.23, with a trading value of THB 3.85 million.
Ngern Tid Lor Public Company Limited (SET: TIDLOR) rose by 2.03% or THB 0.30 to THB 15.10, with a trading value of THB 58.24 million.
Finansia Syrus Securities (FSS) disclosed that MTC achieved a net profit of THB 1.44 billion in the second quarter of 2024, marking a 4% QoQ and 20% YoY growth. This surpassed both FSS’s and the market’s projections by 3%.
The notable increase in net profit was mainly driven by higher net interest income and a reduction in expected credit losses (ECL) and credit costs. MTC’s earnings for the first half of 2024 saw a significant 25% YoY increase, constituting 45% of the forecasted full-year 2024 earnings.
The analyst foresees a positive outlook due to MTC’s exceptional asset quality performance, highlighted by a lower-than-expected non-performing loans (NPL) ratio and credit costs, along with a superior coverage ratio. FSS anticipates a boost in MTC’s earnings for the second half of 2024 compared to the first, buoyed by expectations of reduced credit costs and a decline in the cost-to-income ratio.
Maintaining a positive stance, the analyst projects MTC’s net profit for 2024 to reach THB 6.3 billion, signifying a robust 28% YoY increase, and recommends a ‘BUY’ rating for MTC with a target price of THB 50 per share.
