Analysts are Positive on SCB-Bitkub Partnership, Seeing Potential Growth in Long Term

SCB announced a surprising move yesterday by acquiring 51% shareholding in Thailand’s leading digital asset exchange, Bitkub, with an investment value around 17.85 billion baht in total. The bank stated that the aim of this partnership is to lay the groundwork for digital asset business.

Following the announcement last night, a number of securities companies gave positive views on the acquisition, pointing out on an inexpensive PE while looking forward for a potential growth in Bitkub.


Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad” on November 3, 2021, stated that the investment in Bitkub by The Siam Commercial Bank Public Company Limited (SCB) is very interesting, pointing out that Bitkub has a significant growth in revenue and profit amid the growing cryptocurrency market.

Even though the profit sharing from Bitkub might not be much compared to big companies like SCB, KSS viewed the partnership this a win-win situation for both sides for further growth. Bitkub will benefit from SCB’s customer base and SCB will be able to move forward into a new business while also getting a customer base from Bitkub as well, which is a different type of customer. Lastly, the PE at 18x is inexpensive for SCB compared to its estimated earnings this year, giving a target price for SCB at ฿134.00/share.

Finansia Syrus Securities (FSS) gave a “BUY” recommendation on SCB with a target price from FSSIA at ฿160.00/share after the acquisition in Bitkub Online Company Limited, seeing an inexpensive PE of 17-18x.

FSS stated that this acquisition is an important key for SCB to move forward in fintech. Moreover, The securities company expected high potential growth for Bitkub as the cryptocurrency market is on an uptrend, coupled with acquiring around 18 million clients data from SCB.

Maybank Kim Eng Securities (Thailand) (MBKET) stated that the investment of 17.85 billion baht in Bitkub will enable the company to grow in digital assets. In addition, its banking business is recovering in line with economic recovery reducing pressures of provision. MBKET gave a “BUY” recommendation with a target price at ฿135.00/share.

DBS Vickers Securities (DBSVS) had a positive view on this acquisition, seeing the purchasing price at 17.8x of PE 21F and 60% ROE as inexpensive when compared to the potential growth of the business. However, DBSVS noted that the contribution to SCB in terms of profit might be around 3% to 22F earnings estimate, which is not much, but there is an opportunity to increase in the long term.