On Wednesday at 10:51 AM (Bangkok time), the share price of Krungthai Card Public Company Limited (SET: KTC) rose by 3.31% or THB 1.00 to THB 31.25, with a trading value of THB 384.58 million.
Kasikorn Securities (KS) wrote that the firm recently hosted the KS C-Series event, featuring Mrs. Rojjana Ussayaporn, Chief Financial Officer (CFO) of KTC, and Ms. Apisama Na Songkhla, Head of Treasury and Investor Relations at KTC. During the event, the executives provided institutional investors with updates on the current operating environment and business outlook.
KTC management stated that credit card spending remained stable during January and February 2026, which comes off a high base from the previous year. However, spending growth improved significantly in March 2026, driven by rising oil prices and increased consumer demand for stockpiling essential goods due to the ongoing U.S.-Iran war.
The company maintained its guidance of 5% credit card spending growth for 2026. Kasikorn believes that elevated oil prices and rising goods prices will continue to support credit card spending growth in the short term.
Management also indicated that the impact of the U.S.-Iran conflict is expected to be manageable, as KTC’s clientele consists almost entirely of salaried employees with verifiable income, rather than daily wage workers or freelancers. Historically, management has emphasized that a higher cost of living has not significantly impacted the company.
As a result, Kasikorn remains confident that KTC’s credit cost for 2026 will be controllable at 5.4%, only slightly higher than the 5.3% recorded in 2025. The company also maintains a robust provision coverage ratio above 400%, providing a strong buffer.
Despite the recent increase in bond yields, KTC’s strong liquidity continues to support its position. Management expects financial costs to decrease by 0.15% in 2026, mainly because new debenture issuances will carry lower costs compared to the existing THB 16 billion in debentures, averaging a 3.4% cost, which are set to mature within the year. KTC can choose to issue new debt when market conditions are favorable, thereby mitigating the impact of rising yields.
KTC management remains committed to proactive capital management and aims to continue increasing dividends per share (DPS) in a sustainable manner, benefiting from strong liquidity and gradual loan growth.
Kasikorn remains confident that KTC can maintain a DPS of at least THB 1.77 per year over the next two to three years. The dividend yield is expected to remain attractive at 6.2% in 2026 and 6.7% in 2027.
Kasikorn continues to recommend a ‘Buy’ rating on KTC, with a target price of THB 41.00. The firm notes that KTC’s share price has risen by 12% since the onset of the U.S.-Iran conflict and views this as a good buying opportunity, as KTC appears relatively insulated from the war’s repercussions. The brokerage remains confident that KTC’s profit in 2026 will grow by a robust 10% year-on-year.
