TQM has announced an increase in its dividend payout policy. Analysts from Kasikorn Securities expect the company to pay dividends per share of 1.30, 1.33, and 1.38 baht for 2026-2028, respectively, representing payout ratios of 108%, 105%, and 105%, and dividend yields of 7.7%, 7.8%, and 8.2%. They believe this level of payout is sustainable, supported by dividend income from subsidiaries of approximately 700 million baht per year and cash held by subsidiaries of around 1.3 billion baht. Meanwhile, they expect motor insurance sales to strengthen and gross profit margin to recover in the second half of 2026, with GPM expected to peak in the fourth quarter of 2026. However, they remain cautious about high competition and weak purchasing power, thus maintaining their 2026 normalized profit forecast at 719 million baht. They also expect one subsidiary to be listed on the stock exchange in the fourth quarter of 2026, which could create synergies with the core business in the long term. Although this factor is not yet included in the valuation, they expect to recognize gains from the revaluation of the investment in the fourth quarter of 2026. Consequently, they have raised the target price by 20% to 19.1 baht from 15.9 baht, mainly due to the upward revision of dividend estimates. The company also maintains its share buyback program of 300 million baht, of which 177.7 million baht (59.2%) has been used, with the program set to end on August 31.
TQM Corporation Public Company LimitedDividend policy raised to over 100% payout, target price increased 20% to 19.1 baht.
