Chailease Holding Company (5871 TT, NT$109.5) - Improvement in asset quality drives profit growth

Research evidence excerpt

Chailease Holding Company (5871 TT, NT$109.5) - Improvement in asset quality drives profit growth

: CMoney original auto financing showed slight growth, and the impact of reduced original auto

financing will fade this year, so credit assets are expected to grow at mid-to-high single-

What's changed

digit this year. In China, due to robust asset quality of new businesses in the past two

New Old %

Rating Buy Buy years, new delinquencies have stabilized since the beginning of this year, and credit

Target price 130 117 11 assets recovered growth in April, so credit asset growth is expected to be solid this year.

EPS forecast 12.33 12.3 0 In ASEAN, 1Q26 credit assets in Malaysia and Cambodia both achieved double-digit

Target PE 10.5 9.5 growth, and future growth momentum is expected to be maintained, with Thailand

returning to positive growth, so credit assets are expected to grow at mid-to-high single-Financial summary Year-end: Dec 31

NT$mn FY25 FY26F FY27F digit this year. Overall, we project that Chailease’s consolidated credit assets will grow in

Net sales 97,567 102,273 107,686 the mid-single-digit this year.

YoY growth (%) -4.6 4.8 5.3

Op profit 27,219 30,395 32,738

YoY growth (%) -9.0 11.7 7.7 Asset quality improvement trend remains unchanged, credit costs to decline in FY26

Net profit 19,810 21,678 23,279 Chailease’s 1Q26 credit cost was 2.1%, lower than the 2.4% posted in the same period last

YoY growth (%) -12.3 9.7 7.6

year. Although poor credit asset growth led to a rise in 1Q26 consolidated delinquency

EPS (NT$) 11.24 12.33 13.27

DPS (NT$) 5.8 6.2 6.6 rate to 5.1%, with Taiwan/China delinquency rates rising to 4.1%/7.0% respectively,

PE (x) 10.0 9.1 8.4 China’s monthly new delinquency amounts have remained stable and fell by 20%