Saksiam Leasing Public Company Limited

Kasikorn Securities has upgraded Saksiam Leasing Public Company Limited, or SAK, to a buy rating and raised its target price by 15 percent to 3.9 baht, citing stronger-than-expected loan growth and a dividend yield of 6.1 percent as a cushion against downside risk. Management maintained its 2026 loan growth target of 10 percent year on year after first-half growth of 5.2 percent year to date, with the trend in July and August still solid. Although the issuance of 3 billion baht in debentures at a cost of 5.6 percent will pressure interest margins in the near term, asset quality remains strong, with credit costs expected to rise to 1.3 percent in the second half of 2026 from 1.2 percent in the second quarter of 2026. The broker raised its normalized profit forecasts for 2026 through 2028 by 6 percent, 8 percent, and 12 percent to 874 million baht, 933 million baht, and 1.1 billion baht, respectively. It expects second-half 2026 profit to be soft at 419 million baht, down 8 percent half on half and 7 percent year on year, before recovering in 2027 with growth of 6.8 percent and in 2028 with growth of 13.2 percent. At the current price, SAK trades at a 2026 price-to-book value of only 1.0 times and a price-to-earnings ratio of 7.9 times, while return on equity stands at 12.6 percent.

Listed leasing companies reported robust first-half 2026 results. MTC posted a net profit of 3.728 billion baht, up 15.84 percent from the same period last year, while SAWAD recorded a net profit of 3.005 billion baht, up 22.40 percent. SAK reported a net profit of 454 million baht, up 3.4 percent, and TK posted a net profit of 63 million baht. MTC is targeting 10 percent loan portfolio growth in the second half, SAWAD expects to enter its high season, and SAK is confident its full-year loan portfolio will reach 15.5 to 16 billion baht, growing 8 to 10 percent.

Saksiam Leasing Public Company Limited, or SAK, reported first-half net profit for 2026 of 454 million baht, up 3.4% from the same period last year, with total revenue of 1.686 billion baht and a total loan portfolio of 14.877 billion baht, roughly flat with a 0.2% decline from a year earlier. Growth was supported by the addition of 35 branches to reach 1,114 branches covering 48 provinces, as well as growth in agricultural vehicle registration loans and solar loans. In the second quarter of 2026, total revenue was 883 million baht, up 2.7%, and net profit was 225 million baht, up 4.4% from a year earlier. The non-performing loan ratio stood at 2.7% at the end of the second quarter, up slightly from 2.6% at the end of the first quarter. The company plans to offer its first bond issuance of 2026 under its medium-term note program with a ceiling of 3 billion baht, a three-year tenor, and a fixed coupon of 5.60% per annum, open for subscription from 24 to 27 August 2026. It targets a full-year 2026 loan portfolio of 15.5 billion to 16 billion baht, representing growth of 8% to 10%.

Bluebell Securities is offering newly issued bonds from nine companies, totaling 13 tranches, between August and September 2026. Coupons range from 3.70% to 7.40% per annum, with tenors from one year and six months to five years. Villa Kunalai bonds, with a tenor of two years and three months, carry a coupon of 7.40% per annum, are secured at 1.50 times, and have a credit rating of B plus. They will be offered to institutional and high-net-worth investors on August 20 to 21 and 24. Sak Siam Leasing bonds, with a three-year tenor and a coupon of 5.60% per annum, are rated triple B and will be offered to the general public on August 24 to 27. Aurora Design has two tranches: a one-year-six-month bond with a coupon of 4.80 to 4.90% per annum, rated triple B minus, and a two-year-six-month bond with a coupon of 4.60 to 4.70% per annum, rated triple B, both secured at 1.00 times. They will be offered to institutional and high-net-worth investors on August 25 to 27. Origin Property has two tranches: a one-year-eleven-month bond with a coupon of 5.50% per annum and a two-year-eleven-month bond with a coupon of 6.00% per annum, both rated triple B minus. They will be offered to the general public on August 25 to 27. Micro Leasing bonds, with a two-year tenor and a coupon of 6.40 to 6.60% per annum, are rated double B, secured at 1.20 times, and will be offered to institutional and high-net-worth investors on September 1 to 3. TPI Polene has two tranches: a four-year bond with a coupon of 3.70% per annum and a five-year bond with a coupon of 3.90% per annum, both rated triple B. They will be offered to the general public on September 1 to 3. Next Capital has two tranches: a two-year-six-month bond with a coupon of 5.10 to 5.20% per annum and a three-year bond with a coupon of 5.25 to 5.35% per annum, both rated triple B minus. They will be offered to institutional and high-net-worth investors on September 7 to 9. Charn Issara Development bonds, with a tenor of one year and ten months and a coupon of 7.30% per annum, are rated double B minus, secured at 1.40 times, and will be offered to institutional and high-net-worth investors on September 10 to 11 and 14. Jaymart Group Holdings bonds, with a three-year tenor and a coupon of 5.75 to 6.00% per annum, are rated triple B minus and will be offered to the general public on September 21 to 23.

SAK expects its loan portfolio to continue expanding in the second half of the year, driving full-year growth of around 10% as targeted. A key driver is farmer loans, which have grown well every quarter, with particularly clear growth in the second quarter of 2026, and this momentum is expected to carry into the third quarter of 2026. However, the company remains concerned about risk factors from the El Niño phenomenon, which could have a significant impact from the fourth quarter of this year into early next year, as well as higher production costs due to the conflict in the Middle East, especially diesel and fertilizer prices, which have surged sharply from around 900 baht per sack to 1,400 to 1,500 baht. On the risk management front, the company acknowledges that non-performing loan signals are trending upward. The current NPL ratio has edged up slightly to around 2.7%, and the company aims to keep it from exceeding 2.7% to 2.8%, even though the maximum ceiling is set at 3%. It will focus on prudent lending and close management of Stage 2 debt.

The Ministry of Finance has disclosed progress on the Thailand Individual Savings Account scheme, or TISA, and is preparing to scrap the tax-benefit multiplier so that all citizens receive equal tax deductions. Clearer details and the deduction limit framework are expected in September. The research arm of TTB Wealth Securities views this as positive for the overall stock market, as it will encourage more people to invest in equities, and positive for 14 high-dividend stocks: ADVANC, KTB, KKP, KTC, AMATA, PIN, THANI, SAK, CPN, HMPRO, PTG, SIRI, SPALI, and SAT.

Saksiam Leasing Public Company Limited, or SAK, expects its loan portfolio to expand by another 5% in the second half of the year, resulting in full-year 2026 growth of no less than 10% from the loan base of 14.129 billion baht at the end of 2025. The third quarter, which is the high season for the crop planting cycle, will be a key driver. Meanwhile, the company also aims to keep its full-year non-performing loan ratio at 2.7 to 2.8% and is preparing to offer bonds worth 2 billion baht this August to raise funds for lending.