Muangthai Capital: Strong 1Q26 profit on lower credit costs

Research evidence excerpt

Muangthai Capital: Strong 1Q26 profit on lower credit costs

iQprofile SM Muangthai Capital

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(Bt Millions) Financial Services-Consumer/Commercial

Net Interest Income 21,814 23,843 26,737 29,853 32,851

Net Fee Income 781 572 560 580 600

Securities Gains / (Losses) NA NA NA NA NA Company Description Other Income 165.36 157.27 157.27 157.27 157.27

Total Non-Interest Income 946.07 729.43 717.27 737.27 757.27 MTC is the largest non-bank financial institution in

Total Operating Income 22,760 24,572 27,454 30,590 33,609 Thailand. It specializes in vehicle title loans, capturing over

Operating Expenses (10,790) (11,759) (13,053) (14,358) (15,507) 30% market shares as well as land title deed loans. It has

Pre-Provision Profit 11,970 12,813 14,401 16,232 18,102 the largest branch network at over 8,000 locations. MTC

Provisions Expense (4,642) (4,404) (4,934) (5,438) (5,944)

positions itself as a price leader in the auto title loans

Operating Profit 7,328 8,409 9,467 10,794 12,158

Non-Operating Income NA NA NA NA NA industry. By offering the lowest interest rates, it attracts

Pre-Tax Income 7,328 8,409 9,467 10,794 12,158 high loan volumes, which strengthens its markt share and

Net Income to Comm S/Hold. 5,867 6,723 7,570 8,631 9,721 competitive edge.

Adjusted Net Income (Operating) 5,867 6,723 7,570 8,631 9,721

Key Balance Sheet Data

Total Assets 170,846 192,382 209,118 230,053 250,243 Investment Rationale

Average Interest Earning Assets 164,494 183,501 203,995 225,372 246,094 We assign a Buy rating on MTC. The valuation is attractive

Weighted Risk Assets NA NA NA NA NA while we see market concerns over asset quality and

Total Gross Customer Loans 164,242 183,223 203,707 225,074 245,786