Thitikorn encouraged by 2017 upswing
SET-listed Thitikorn Plc (TK), the country’s largest motorcycle lender, has revised its lending growth target this year up to 10% after first quarter loan growth nearly hit the full-year target of 5%, thanks to the economic recovery and higher farm product prices.
The company’s solid loan growth for the three months to March reflects the rising purchasing power of low-income earners, who were hit adversely hit by the faltering economy and the recent plunge in agricultural product prices.
“We’ve revised the lending growth target to 10% from 5%,” deputy managing director Prapol Phornprapha said.
The company’s loans expanded by 4.25% in the first three months of this year.
Mr Prapol is optimistic the company’s earnings in the second half will be stronger than the same period of last year, as loan growth momentum is expected to continue its upward swing, following increases for the sixth straight quarter, due to higher farm product prices.
Motorcycle loans dominated the company’s loan portfolio at 90% in the first quarter, car loans at 7% and others loans making up the rest.
Thitikorn’s outstanding loans at the end of March were 8.05 billion baht, up from 7.72 billion at the end of 2016, while its non-performing loans declined to 4.6% from 4.8%.
For the January-to-March quarter, Thitikorn’s total revenue rose to 872 million baht from 811 million over the same period last year, but net profit fell slightly to 104 million from 110 million.
Meanwhile, Mr Prapol said the company plans to issue bonds worth hundreds of millions of baht within the second half of this year to raise funds for its hire purchase business as growth in the first quarter surpassed expectations.
In February, the company sold threeyear bonds worth 1 billion baht, the largest volume the company has ever issued, with a fixed coupon rate of 2.83%.
He said the company plans to open three more branches in Cambodia this year, bringing the total to six by the end of this year and looking into the opportunity to expand into new countries.
At present, the company has 88 branches in Thailand, one in Laos, three in Cambodia.
TK shares closed on the SET yesterday at 10.80 baht, down 20 satang, trade worth of 3.69 million baht.