First Read: Srisawad Corporation "Credit quality remains manageable in the..."

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First Read: Srisawad Corporation "Credit quality remains manageable in the..."

Global Research

18 May 2026ab

First Read

EquitiesSrisawad Corporation

Credit quality remains manageable in the short Thailand

term Banks, Ex-S&L

12-month rating Neutral

12m price target Bt23.00

Credit quality outlook

SAWAD expects credit quality to remain manageable in the short term, supported by 1)

a significant NPL cleanup and stricter LTV policies over the past two years, 2) a more Price (18 May 2026) Bt21.50

assertive debt collection strategy, and 3) potential government cash handouts to offset RIC: SAWAD.BK BBG: SAWAD TB

oil price inflation. Losses from car repossessions were unusually low at Bt30m in Q126

Trading data and key metrics

due to stronger used car prices and fewer repossessions. Management anticipates

sequentially higher repossession losses in Q226, though below Bt100m per quarter, as 52-wk range Bt31.50-14.90

SAWAD adopts a more aggressive repossession strategy to reduce NPLs, shifting from its Market cap. Bt32.5b/US$0.99b

Q126 debt collection focus. Oil price fluctuations have not materially impacted credit Shares o/s 1,510m (ORD)

quality this quarter. Risks to credit quality may arise from 1) a new high-yield loan growth Free float 55%

strategy, such as mobile hire purchase, potentially leading to uncontrollable NPLs (similar Avg. daily volume ('000) 14,741

to past issues with motorcycle hire purchase and title loans), and 2) a decline in used car Avg. daily value (m) Bt357.2

prices following prolonged elevated oil prices. Common s/h equity (12/25E) Bt37.5b

P/BV (12/25E) 1.0x

Loan growth target presents considerable challenges, in our view Tier 1 ratio -

SAWAD has reaffirmed its 2026F loan growth target of 10-15%, with a minimum of

EPS (UBS, diluted) (Bt)