4 Brokers Cheer 'Buy' on MTC with a High Target of 85 Baht. Highlighting Strengths as Industry Leader/Low NPL, Boosting Motorcycle Leasing, Reinforcing Portfolios

4 gurus recommendations 'Buy' MTC target price 75-85 baht/share highlighting the strengths of the leading vehicle title loans lender, with a widespread branch network across Thailand and efficient debt management, having Non-Performing Loans (NPL) at just 1.05%. Strong revenue growth is expected in the next 1-2 years, supported by motorcycle leasing, driving continuous operational milestones.

DBS Vickers Securities (Thailand) published an analysis recommending a 'Buy' on Muangthai Capital Public Company Limited (MTC) with a target price of 85 baht/share. MTC leads the vehicle title loans market, especially motorcycles, with a high customer base ranking first. Additionally, its nationwide branch network indicates substantial growth potential, unlike banks focusing on financially stable borrowers.

Unsecured products without collateral assist in supporting interest rates amid fierce interest rate competition. Furthermore, the risk is well-diversified across contract sizes, customer bases and nationwide branches. Therefore, the recommendation remains 'Buy' with a revised target of 85 baht within the next 12 months.

Kiatnakin Phatra Securities Public Company Limited advised a 'Buy to accumulate profits' with a target of 80 baht based on Q4/2020 profits of 1.37 billion baht, a 21% YoY growth and 2% QoQ as anticipated. This growth is due to a 18% YoY loans expansion, managed with high-quality debts resulting in a low NPL of 1.05%. Anticipating a 23% credit growth from agricultural and non-systematic labor sectors due to lower interest rates.

Additionally, the support factors include lower funding costs for loans and effective risk control, contributing to the company's profitability.

Citicorp Securities (Thailand) suggested a 'Buy' with an 80 baht target, expecting a 10% increase in P/E ratio to 21-22 times due to the new motorcycle leasing business. They believe the company can continue high growth, generating increased interest income while maintaining asset quality.

Capital Nomura Securities Public Company Limited recommended a 'Buy' with a 75 baht target, foreseeing substantial growth in the new motorcycle leasing business, targeting 120,000 new motorcycle leases this year with a high-interest rate of 24%. The asset quality is deemed excellent, positioning it as a top pick in the Consumer Finance group.