KGI Securities has raised its target price for KKP shares to 145 baht from 125 baht, maintaining a buy recommendation, after lifting its 2027F profit forecast by a further 5% to reflect fee income growth accelerating to 17% from a previously estimated 8%, and a PE re-rating to 14x from 12.5x, equivalent to a PBV of 1.75x, based on the shift to 2027F estimates. That represents a premium of about 30% over fair PBV, reflecting the ability to lift ROE and a dividend yield as high as 7%. The research team kept its 2026F profit forecast unchanged, assessing that provisioning expenses have passed their peak and are trending down to 1.2-1.3% in the second half of 2026, after provisions rose to 1.46% of loans, supported by lower losses from repossessed vehicles and a 20% year-on-year decline in NPLs in the first half of 2026 across all loan segments, along with the clearing of long-overdue bad debts in the first half of 2026. On the wealth management side, KKP has gained market share, with its high net-worth asset base growing 13% year-to-date, mutual funds and private funds up 14%, and the Dime segment up more than 60%. It has assets under management of more than 1.1 trillion baht, growing at twice the industry average, and revenue from this business accounts for 70% of total non-NII income, or about 30% of total revenue. Meanwhile, investment banking revenue came in at 145 million baht in the first half of 2026, down 16% year-on-year, with the research team assuming IB fees of 312 million baht in 2026F and 350 million baht in 2027F.
Kiatnakin Phatra Bank Public Company LimitedKGI raised its KKP target price to 145 baht from 125 baht and lifted 2027F profit forecast by 5% on stronger fee income and PE re-rating.
