The share price of Kiatnakin Phatra Bank Public Company Limited (SET: KKP) rose as much as 6% to trade at THB76.25 per share on April 21, 2022, following better-than-expected 1Q22 earnings.
The share price rose for the third straight day with a 2.92% gain on Tuesday and another 1.77% gain yesterday.
Earlier, KKP reported a net profit of THB2,055 million in 1Q22, an increase of 40.5% compared to 1Q21 while comprehensive income totaled THB1,954 million also increasing by 27.6% YoY. The increase was largely driven by strong performance from the Commercial Banking Business with increase in both interest income and fee income generated from the credit business while provisioning expenses declined in line with well-managed portfolio quality.
The net profit of THB2,055 million was 18.33% higher than the market estimated, according to Refinitiv.
KGI Securities has given an “Outperform” rating on Kiatnakin Phatra Bank Public Company Limited (SET: KKP) with a target price at ฿81.50/share.
KGI Securities stated that KKP reported 1Q22 earnings of 2.0 billion baht (+2% QoQ, +40% YoY). The result was 40% above the forecast and 18% above the consensus due to a sharp fall in loss on selling repossessed cars and solid fee income. Going forward, KGI Securities saw solid earnings in 2Q22F from IB fee income. With the improving loss on selling repossessed cars and solid fee income, KGI Securities raised its earnings forecasts 9%/8% in 2022/2023, raised the 2022 target price to THB81.50 (PE 10x) and upgraded the counter to Outperform, from Neutral.