On Wednesday at 2:29 PM (Bangkok time), the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) rose by 4.59% or THB 1.00 to THB 22.80, with a trading value of THB 819.80 million.
Pi Securities has issued a ‘Buy’ recommendation for SAWAD, setting a target price at THB 26.00 per share. The brokerage projects that overall lending in 2026 will expand by 10-15%, with the company primarily focusing on the growth of its title loan portfolio.
ASL Securities wrote that SAWAD has now fully entered an earnings upcycle after resolving issues related to asset quality and addressing more than 95-99% of its non-performing loans. This development contributed to a notable recovery in the company’s first quarter 2026 financial performance, with a net profit of THB 1.45 billion, representing an increase of 28% year-on-year.
The primary driver was a sharp reduction of 62% in losses from the sale of repossessed vehicles, declining to just THB 109 million. Simultaneously, the yield improved to 18.24%, and the net profit margin rose to an industry-leading 29.73%. These indicators reflect improved quality of the new loan portfolio and reduced pressure from loan-loss provisions.
Moreover, SAWAD’s credit rating was recently upgraded to A-(tha) by Fitch Ratings. This enhancement is expected to significantly lower the company’s financial costs. This year, SAWAD will see approximately THB 8-10 billion of high-cost debentures (with interest rates between 4.00-4.90%) mature. The company now has the opportunity to refinance this debt at a lower cost of about 2.85%, a move that will support further expansion of net interest margin in subsequent periods.
Amid the currently high household debt environment, SAWAD has adopted a ‘Selective Growth’ strategy, aiming for loan portfolio growth of 5-10% by concentrating on high-yield, title-backed auto loans, which currently account for over 73% of the company’s total portfolio.
At the same time, SAWAD aims to expand its revenue streams through insurance brokerage, especially in electric vehicle insurance and health insurance products, leveraging cross-selling opportunities to its existing lending clientele. The company targets annual income growth of 15-20% from this segment, which will help diversify its income structure and reduce earnings volatility.
SAWAD’s ‘Digital Transformation’ strategy, highlighted by the deployment of the Srisawad application and e-KYC systems, has already yielded results with administrative expenses falling 15% year-on-year, reflecting continuously improving operational efficiency.
A notable strength for SAWAD lies in its robust capital structure, with a debt-to-equity ratio of only 1.53x—the lowest in the sector. This provides ample room for additional loan expansion without the need to raise new equity and offers superior resilience to economic fluctuations compared to its peers. Management has also signaled the potential for considering an interim dividend payout after the third quarter, supported by strong liquidity.
The company currently operates more than 5,823 branches nationwide, facilitating direct access to grassroots customers. SAWAD also stands to benefit from government economic stimulus measures, such as the ‘Thai Chuay Thai Plus’ program, which is expected to enhance customer liquidity and debt repayment capabilities.
These developments position SAWAD as a leading financial sector stock, offering both upward potential from margin expansion and reduced downside risk, following the completion of its asset quality clean-up cycle.
