Yuanta rates SINGER a Buy with 13.70 baht target as 2026 profit set to surge 516%

AnalystAnalyst
โดย HoonVision·TH·Read original
Summary · why it matters

Yuanta Securities said, after speaking with SINGER's management, that the company's product sales are accelerating well and are expected to meet its third-quarter 2026 target of 25% QoQ growth, supported by an expanding dealer base and a continuously rising number of sales staff. Meanwhile, loan disbursements for SGC's Lock Phone product are performing better than expected, rising about 20% quarter-to-date in July and August, with customer demand still increasing in September, giving SGC a strong chance of exceeding its own target of 14 billion baht in new loan disbursements this year. As for the sale of the vehicle registration pledge loan portfolio, the transfer of the portfolio will begin in the fourth quarter of 2026 and is initially not expected to have a significant negative impact; it is a move to accelerate the restructuring of the portfolio toward a higher proportion of higher-yielding Lock Phone loans. On regulatory risk from the Bank of Thailand's tightening of non-bank controls, the company assesses the impact as limited, since it already conducts business in line with Market Conduct principles and charges loan interest of no more than 25%, in line with its personal loan licence. Given the positive view on SINGER group's strong third-quarter 2026 operating outlook, Yuanta raised its forecasts for interest income and profit from product sales for 2026/27, lifting its net profit forecasts for SINGER for 2026/27 by 6.8% and 4.9% respectively. Under the new forecasts, net profit in the second half of 2026 is expected to grow strongly YoY and continue rising HoH, driven by higher profit from electrical appliance sales and accelerating interest income from lending, while expenses remain at a low level. This supports full-year 2026 net profit for SINGER of 647 million baht, a standout 516% YoY increase, followed by a further 21.5% YoY rise in 2027. Yuanta views the share price decline as merely concern over higher bond yields during a period when crude oil prices have surged amid rising unrest in the Middle East, while SINGER's operating performance can still grow well through expanding its customer base in the provinces, both in electrical appliance sales and in higher Lock Phone lending by SGC. The company also has no plans to issue additional debentures this year and will receive proceeds from the sale of the vehicle registration pledge portfolio in the fourth quarter of 2026, so it does not need to rush into new debenture issuance while bond yields are rising. It therefore sees the share price correction as an accumulation opportunity and maintains its Buy recommendation with a new 2027 fundamental value of 13.70 baht, implying 29.3% upside.

Impact on stocks 2

Consumer Discretionary▲ · 1 stocks
Financials▲ · 1 stocks
SG Capital PCL
SGC
▲ PositiveDemandrelevance

SGC's Lock Phone loan disbursements are beating expectations, up ~20% QTD in July-August with demand still rising in September, likely exceeding the 14bn baht target.

© 2026 MarketDXNews