After the Company returned the license in 2022, as mentioned above, and shifted to business operation on provision of personal loans under supervision and hire purchase loans. The Company’s business can be classified as follows:
Personal loans under supervision
The Company provides unsecured personal loans through independent sales teams, focusing on customers who have a good records and financial stability but encounter a temporary shortage of liquidity or those who seek more funding sources options. The service is available for potential customers, who earn minimum monthly income of 30,000 baht. With the payment periods ranging from 12-60 installments, is unsecured loan service is offered with an annual interest rate of not exceeding 25% percent per year.
Hire purchase loans
The Company’s group provides hire purchase loans for new motorcycles operated by S Leasing Company Limited and Cathay Leasing Company Limited, which are companies under the Group’s umbrella. The firms provide hire purchase loans to individuals who wish to purchase motorcycles. The motorcycle hire purchase loans are offered for various types and brands of motorcycles, with the loan repayment periods from 12-60 installments. The services are offered through the Company’s motorcycle dealership partners.
| 9M24 | 9M23 | 2023 | 2022 |
|---|
| Revenues | 5,951.21 | 5,198.96 | 7,164.66 | 3,779.10 |
| Expenses | 4,328.55 | 3,568.83 | 5,077.51 | 2,013.80 |
| Net Profit (Loss) | 515.24 | 794.45 | 904.31 | 660.61 |
| Assets | 36,326.21 | 37,199.69 | 38,203.91 | 25,042.28 |
| Liabilities | 25,968.02 | 27,410.69 | 28,262.86 | 14,009.64 |
| Shareholders' Equity | 10,185.96 | 9,648.35 | 9,777.20 | 10,931.51 |
| Operating | 1,563.10 | -11,589.40 | -12,849.13 | -5,329.99 |
| Investing | -7.12 | -29.14 | -110.11 | 1,593.68 |
| Financing | -930.37 | 11,892.81 | 12,974.24 | 3,615.52 |
| EPS (Baht) | 0.08 | 0.12 | 0.14 | 0.84 |
| GP Margin (%) | ||||
| NP Margin (%) | 9.16 | 16.03 | 13.38 | 30.09 |
| D/E Ratio (x) | 2.51 | 2.80 | 2.84 | 1.27 |
| ROE (%) | 7.49 | 9.96 | 8.73 | 6.04 |
| ROA (%) | 5.84 | 5.58 | 6.60 | 7.05 |
The Company aims to provide integrated financial services; and we are particularly targeting to become the leader in retail loans for the grass-root sector and the middle-end market, which are the country’s key customer base. This business objective would enable the Company to grow unlimitedly and potentially pursue growth alongside the country’s economic expansion.
The Company has integrated operational practice based on the United Nations Sustainable Development Goals (UN SDGs) to the business operation strategies. The Company has also outlined policies relevant to both internal and external contexts in the dimensions of economy, society, and environment in order to determine strategies for business drive for sustainability, based on good corporate governance fundamentals.
The Company has maintained stringent customer selection standards, continuously enhancing client quality by gradually reducing loan-to-value (LTV) ratios. This approach has led to a decrease in costs related to properties for sales. Additionally, the Company has improved cost management efficiency, resulting in better operational performance. In the third quarter of 2024, the Company started to observe positive results from its enhancement to lending processes and credit policies, as reflected in the improved performance in this quarter. However, the Company remains focused on enhancing debt management measures to be responsive to potential credit risks and on mitigating risks from other business factors that may arise in the future. These efforts aim to sustain strong profitability amid ongoing economic uncertainty extending into the next year.
For the three-month period ending 30 September 2024, the Company achieved a net profit of 231.71 million Baht, an increase of 98.44 million Baht, or 73.86%, compared to the same quarter of the previous year. This improvement partly resulted from the enhanced quality of the loan portfolio, following the Company’s efforts to improve debt quality and reduce portfolio risk. Consequently, expenses related to debt collection and properties for sales have decreased year-over-year. When compared to 2Q24, net profit also increased by 19.46 million Baht, or 9.17%, signaling an upward trend in business performance. As of 30 September 2024, total assets stood at 36,326.21 million Baht, a decrease of 2.76% from 30 September 2023. This decrease reflects the Company’s strict lending, with a focus on high-quality clients to further improve the overall quality of its loan portfolio.
Going forward, the Company will pursue and expand to other retail business segments. At present, the Company is very well-equipped to expand our business coverages. We are currently focusing on the upper-tomid market segments of personal loans, with a target on potential customers who earn high regular income, and the low-end retail loan market for the new motorcycle hire purchase loan business. Therefore, we will potentially expand both horizontal and vertical business coverages to drive for better earnings performance by optimizing the Company’s existing business structure fundamentals.
Risk management is a very important priority for the Company. Therefore, the Company has created risk management policies as a tool for risk management and internal control in various areas, as well as developing a risk management system for employees at all levels to adhere to. The Company has established a risk management committee, and a working panel on risk management to oversee risk management. In addition, the Company has determined risk management policies as part of the risk management guidelines, which are regularly updated so as to ensure consistency and effective responses to the nature of business operations and the changes in economic, social and environmental conditions.
In 2023, the Company successfully maintained our Number 1 position in the new motorcycle hire purchase business. Recently, the Company has achieved the CG scores of 'Excellent" level for the the year 2024 jointly held by The Stock Exchange of Thailand, and Thai IOD.
| as of 30/09/24 | SCAP | FIN | SET |
|---|---|---|---|
| P/E (X) | 27.30 | 16.95 | 18.03 |
| P/BV (X) | 1.44 | 1.53 | 1.37 |
| Dividend yield (%) | 0.10 | 1.96 | 3.16 |
| 30/09/24 | 28/12/23 | 30/12/22 | |
|---|---|---|---|
| Market Cap (MB) | 14,467.26 | 22,901.95 | 34,808.36 |
| Price (B/Share) | 2.18 | 3.52 | 26.75 |
| P/E (X) | 27.30 | 21.23 | 64.66 |
| P/BV (X) | 1.44 | 2.37 | 3.27 |
