Asia Plus Securities has upgraded its recommendation on TCAP to Buy, with a target price of 105 baht, after second-quarter 2026 net profit came in at 2.64 billion baht, up 25% from the previous quarter and 28% from a year earlier. The increase was driven mainly by non-interest income, including dividend income, share of profit from associates, and investment gains. Net interest income fell 5% from the previous quarter and 12% from a year earlier, as THANI tightened lending, causing net loans to decline 4.2% from the previous quarter and 5.7% from the start of the year. Interest expenses rose due to financial restructuring, but provisions fell 79% from a year earlier on better asset quality, representing a credit cost of 0.5%. The cost-to-income ratio was 12.3%, down from 13.0% in the previous quarter and 13.9% a year earlier. For the first six months of 2026, net profit was 4.77 billion baht, up 26% from a year earlier, equal to 52% of Asia Plus Securities' full-year net profit estimate. Asia Plus Securities raised its 2026 and 2027 net profit forecasts by 16% and 20% to 9.23 billion baht, up 19% from a year earlier, and 9.6 billion baht, up 1% from a year earlier, respectively, on better-than-expected non-interest income, especially a significant increase in dividend income and improved insurance income, as well as a smaller-than-expected decline in provisions, implying a full-year credit cost of 0.6%. It also raised its dividend payout ratio to 57.5% from 50%, equal to a dividend of 5.06 baht per share, and expects an interim dividend of 1.35 baht per share, representing a dividend yield of 1.5%. The share buyback program of up to 7.5 billion baht, covering 104.86 million shares or no more than 10% of paid-up shares, from 17 August 2026 to 16 February 2027, will help lift shareholder return by 1% to 10.4% by the end of 2027, supporting the share price and limiting downside risk. The target price of 105 baht is based on a price-to-book value of 1.17 times, assuming return on equity of 10.2% and cost of equity of 9.2%. Although the share price has already risen more than 48% from the start of the year and hit a new 30-year high, it still offers a high dividend yield of 5.7% to 6.1% per year during 2026 to 2028. On technical factors, the price has formed a double bottom and is holding clearly above the 5-day moving average. In the short term, it made a new high with a long white candle. Intraday support is at 88.25 to 88 baht. The trend is to continue rising within an uptrend channel, with resistance at 90 and 93 baht.
Thanachart Capital Public Company LimitedUpgraded to Buy with higher target, raised profit forecasts and dividend payout, plus share buyback program.
Ratchthani Leasing Public Company LimitedTHANI tightened lending, causing net loans to decline, reducing demand for its leasing services.
