On Friday at 10:54 AM (Bangkok time), the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) soared by 9.29% or THB 2.10 to THB 24.70, with a trading value of THB 725.11 million.
Liberator Securities stated that SAWAD posted a net profit of 1.27 billion baht in 2Q25, up 15.4% quarter-on-quarter and 0.4% year-on-year, surpassing market expectations by 13%. Net interest income (NII) expanded by 2.9% quarter-on-quarter as vehicle title loans grew for the first time in four quarters. Meanwhile, net interest margin (NIM) rose to 14.7% from 14% in 1Q25. On asset quality, the NPL ratio edged up slightly to 3.7% from 3.6%.
The brokerage firm expects SAWAD to see further growth in 3Q25 from accelerating loan volumes, increasing NIM, and a reduction in losses from repossessed vehicles, and sets a strategic target price of THB 24.00 per share for the company.
On the other hand, Krungsri Securities (KSS) noted a slightly positive view on SAWAD’s 2Q25 net profit, which was better than both the analyst’s and the market’s estimates, mainly due to lower-than-expected operating expenses (OPEX). Net profit was flat year-on-year but grew 15% quarter-on-quarter, supported by the NIM increase following debtor assistance and declining losses on repossessed vehicles last quarter.
Given the stronger-than-expected 2Q25 profit, KSS has revised up the 2025-2027 earnings forecasts by 8-9% annually.
The analyst maintains a ‘Neutral’ rating on SAWAD, while upgrading the target price to THB 24 per share, due to ongoing asset quality and regulatory risks for the hire-purchase business. Meanwhile, SAWAD is anticipated to be the sole company in the consumer finance sector to record a year-on-year contraction in 2025 net profit.
