On Friday at 11:06 AM (Bangkok time), the share price of Krungthai Card Public Company Limited (SET: KTC) surged by 1.72% or THB 0.50 to THB 29.50, with a trading value of THB 731.46 million.
Maybank Securities noted KTC’s robust fundamentals, with the stock also gaining short-term support from its addition to the MSCI Global Small Cap Index, effective as of the close on August 26, 2025. The announcement has triggered speculative buying ahead of the inclusion. Meanwhile, the company is targeting an expansion into the insurance brokerage business before 2026, which is expected to drive future profit growth.
KTC shares have dropped 46% year-to-date, in stark contrast to the SET Index’s 9.6% decline, mainly due to continuous heavy sell-offs. Nonetheless, the company’s business remains solid, shown by a five-year average ROA of 6.7%, the highest in its financial peers. The stock is now trading near -1.8 standard deviations for both its 2025 PE and PBV ratios, and offers a projected 2025 dividend yield of 5.1%, which may help limit further downside risk.
Additionally, Finansia Syrus Securities (FSS) gives KTC a ‘Buy’ recommendation, with a target price of THB 32 per share, citing resilient performance expected in the second half of 2025. The company reported 2Q25 net profit growth of 4% year-on-year and 2% quarter-on-quarter, with asset quality remaining strong as the NPL ratio dropped to 1.83%. Provisions and operating expenses have also been well managed.
The company’s 2025 profit is forecast to grow by 3%, with an estimated dividend yield of 4.5% per year. Moreover, inclusion in the MSCI Global Small Cap Index is seen as a sentiment booster.
