The Siam Commercial Bank, a subsidiary of SCB X Public Company Limited (SET: SCB), has signed a loan agreement to fund the construction of the Mass Transit Railway Pink Line while expecting to offer more loan agreements this year.
Mr. Kris Chantanotoke, Director and Chief Executive Officer of Siam Commercial Bank, stated that the bank recently offered a loan for the construction of one phase of the Mass Transit Railway Pink Line at the amount of 10,000 million baht, saying that there are more construction phases than the one it had offered.
The CEO added that the bank will support infrastructure projects of the government sector through lending, especially a great number of Mass Transit Railway projects in the future.
The company targets 2-3% loan growth for big projects this year, while pointing out that there are three to six deals at the amount of over 10,000 million baht in the pipeline waiting for approvals.
ASL Securities stated that SCB has limited downside risks and is underperforming SET Index. More importantly, SCB is offering an interim dividend payout of THB5.19, equivalent to a 5.1% dividend yield. On an annualized basis, the company offered THB6.69 dividend payout, equivalent to 6.6% dividend yield.
ASL Securities recommended “BUY” with a target price at THB123.50 per share as the current share price is trading at 0.8x P/BV, which is lower than pre-Covid level.