On Thursday at 10:47 AM (Bangkok time), the share price of Muangthai Capital Public Company Limited (SET: MTC) surged by 3.85% or THB 1.50 to THB 40.50, with a trading value of THB 343.22 million.
Srisawad Corporation Public Company Limited (SET: SAWAD) jumped by 5.56% or THB 1.50 to THB 28.50, with a trading value of THB 331.76 million.
Tidlor Holdings Public Company Limited (SET: TIDLOR) increased by 2.53% or THB 0.50 to THB 20.30, with a trading value of THB 192.56 million.
JMT Network Services Public Company Limited (SET: JMT) grew by 0.83% or THB 0.10 to THB 12.20, with a trading value of THB 131.40 million.
Phillip Securities (Thailand) stated that recent cash transfers by the state-run Bank for Agriculture and Agricultural Cooperatives (BAAC) to rice farmers are set to improve the financial health of the sector.
Under the program, starting September 1, BAAC distributed payments of 1,000 baht per rai, amounting to a total of 20 billion baht. This injection of liquidity is expected to strengthen loan repayments among rural borrowers, in turn supporting a reduction in non-performing loans (NPLs) and easing reserve requirements for finance companies—providing a tailwind for sector earnings.
The brokerage firm expects finance-sector lending to accelerate in the second half of 2025, consistent with seasonal patterns, and sees further upside from a potential policy rate cut in the third quarter. Lower interest costs would bolster interest income as lending expands, improving the sector’s overall performance.
Despite these positives, the analyst maintains a ‘Market Weight’ rating for Thai finance stocks, citing the lingering risk of NPLs amid Thailand’s uneven economic recovery. Among major players, Muangthai Capital (MTC) is highlighted as the firm’s top pick, with a target price of 50 baht per share, attributing the call to MTC’s superior loan growth compared to peers.
In the first half of 2025, MTC reported 6.5% loan growth, outpacing industry peers TIDLOR, which grew just 1%, and SAWAD, which posted a 1.4% contraction. MTC also notched improvements in asset quality for eight consecutive quarters, reducing its bad loan ratio.
Meanwhile, an outlook from Liberator Securities echoed optimism for MTC’s performance in the second half, predicting continued growth on the back of rising interest income, lower provisions, and resilient asset quality. A more stable political environment is also seen as supportive, potentially spurring greater speculation in finance stocks in the months ahead.
