On Monday, the share price of Muangthai Capital Public Company Limited (SET: MTC) at the time of 2.34 p.m. was at THB 38, a THB 3.5 or 10.14% increase with a total trading value of THB 815.77 million.
Meanwhile, the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) at the same time was at THB 27.75, a THB 2 or 7.77% increase with a total trading value of THB 483.31 million.
The share price of JMT Network Services Public Company Limited (SET: JMT) was at THB 8.8, a THB 0.45 or 5.39% increase with a total trading value of THB 788.78 million.
The share price of Tidlor Holdings Public Company Limited (SET: TIDLOR) was at THB 18.8, a THB 1.20 or 6.82% increase with a total trading value of THB 339.04 million.
The share price of Krungthai Card Public Company Limited (SET: KTC) was at THB 30.25, a THB 1.5 or 5.22% increase with a total trading value of THB 814.69 million.
Maybank Securities (Thailand) stated that Bhumjaithai Party’s policy to offer an electric motorcycle installment plan at THB 300 per month for 60 installments is supporting finance groups’ loan disbursements, such as MTC.
MTC’s 4Q25 profit is expected to outperform its peers compared to both the same period last year and the previous quarter. MTC’s current price is close to its record low in March 2020, and it is now trading at a PE ratio of 10.4 times for 2026 (-1SD of the 5-year historical average). Earnings growth for 2026-2027 is projected to average 8%, compared with the sector’s 6-7%.
InnovestX Securities added that asset quality for the microfinance sector is expected to remain stable in 4Q25, as the benefits of the government’s “Half-Half Plus” scheme are likely to be offset by the impact of the flooding in the South, which seems less severe than initially anticipated.
Positive factors are expected from the election and measures to reduce household debt (although the level remains high), supported by various debt relief schemes. However, asset quality requires cautious monitoring given the economic slowdown expected in 2026. Credit cost is projected to remain stable for 2026.
Further, loan growth is expected to recover at TIDLOR and SAWAD as both companies seem more willing to accept higher risk, planning to accelerate loan expansion in 2026 after maintaining strict lending policies in 2024-2025. Companies in the microfinance group are expected to deliver 10-11% loan growth in 2026.
In contrast, KTC and AEONTS are anticipated to see only modest loan growth in 2026 due to continued strict lending policies for unsecured personal loans.
NIM (Net Interest Margin) is expected to improve in 4Q25 and 2026 as financial costs decline, in line with further policy rate cuts. A further 0.25-0.50% rate cut is expected in 2026.
Profits in the microfinance sector are forecast to rise by double digits in 2026 (15% for MTC; 10% each for TIDLOR and SAWAD), with profit drivers being strong loan growth and improved NIM. KTC and AEONTS are expected to report 4% profit growth in 2026, mainly from improved NIM amid modest loan growth.
Consumer finance stocks have underperformed the SET Index over the past six months, despite signs of earnings recovery. Currently, microfinance stocks have become value stocks, trading at valuations similar to bank stocks, but with stronger earnings growth prospects. This is seen as an opportunity to acquire microfinance stocks, which are now trading at PEG ratios below 1x and PBV at a discount relative to ROE.
Top picks: MTC, SAWAD, TIDLOR
