MTLS Crushes Rumors!! Confirms Strong Financial Status - No Risk of B/E Ticket Default and No Need to Increase Debt Capital. Emphasizes 50% Revenue Growth, Current NPL at Only 1%

"Chuchat Petaumpai" affirms MTLS's robust financial position, pointing out that the circulating rumors regarding defaults on B/E money tickets and the necessity to increase debt capital are untrue. He reiterates that in '2017, the loan trend grew by 50%, with the next year expecting a further 40% growth, aligning with the revenue-profit direction. Additionally, current NPLs stand at a mere 1%, with complete reserves as per the law. The D/E ratio is at 2.9, below the bank's designated rate of 4 times.

Chuchat Petaumpai, the CEO of Muangthai Leasing Public Company Limited (MTLS), addressed the circulating rumors about the company facing risks of defaulting on B/E money tickets totaling 6 billion baht and the potential need to increase capital to support it.

He confirmed that the business situation remains normal, with a strong financial footing. There are approximately 600 million baht worth of B/E money tickets nearing full payment in August. Moreover, the company possesses high flexibility, including available credit lines from multiple banks totaling over 5 billion baht, immediately accessible.

The issuance of bond is a long-term plan with prior approval from shareholder meetings. Towards the end of August, a certain amount of bond will be issued, with considerable investor interest already shown. Furthermore, there's no immediate necessity for capital increase as the current funds are deemed sufficient for business operations and investments.

Regarding speculations that MTLS might default and hastily issue bond stocks or require increased capital, Chuchat expressed that such assumptions stem from misunderstanding. The Q2/2017 financial results were positive, with increased cash flow indicating a stronger stance. Short-term debts nearing completion are around 600 million baht, and the company possesses unused bank credit lines totaling 5,000 million baht, ensuring stability. The issuance of bond stocks aligns with preset plans without alterations.

Additionally, the company aims to increase loan growth by 50% this year compared to the previous year's 37 billion baht, projecting a 40% increase in '2018. Confidence persists that the latter half of this year will perform better than the initial half, which saw loan growth of 25 billion baht. Revenue and profits are expected to follow a similar trajectory.

Regarding credit control to prevent Non-Performing Loans (NPLs), which should not exceed 1.5 times, MTLS currently holds only 1% NPLs. The company also maintains a reserve provision of 260% of NPLs, and its Debt-to-Equity (D/E) ratio stands at 2.9, below the industry average.

"The company's risks are minimal because the quality of our issued loan is high. Our NPLs are even lower than the designated policy, and importantly, we maintain reserves as required by law. Today, our D/E ratio is at 2.9, while banks allow up to 4 times. Therefore, there's no necessity for capital increase, contrary to misconceptions" concluded Chuchat Petaumpai