On Thursday at 12:12 PM (Bangkok time), the share price of Thanachart Capital Public Company Limited (SET: TCAP) gained 4.02% or THB 2.50 to THB 64.75, with a trading value of THB 271.66 million.
Yuanta Securities (Thailand) wrote that TCAP’s 1Q26 net profit accounted for 28% of the unchanged full-year estimate by the brokerage. Preliminary expectations indicate that TCAP’s net profit for the second quarter will remain stable year-on-year but will decline compared to the previous quarter.
Although TCAP is expected to benefit in Q2 from the dividend season of its subsidiaries, with dividend income typically recognized at its yearly peak during this period, this positive factor is likely to be offset by two key negatives: (1) a continued decline in net interest income, in line with the ongoing slowdown in loan growth at both Ratchthani Leasing Public Company Limited (SET: THANI) and Thanachart Plus Company Limited (TPLUS), and (2) an anticipated increase in provisions compared to the previous quarter due to heightened caution amid rising economic risks, particularly as living costs increase with higher crude oil prices.
Based on these factors, Yuanta continues to forecast TCAP’s full-year net profit for 2026 at THB 7.69 billion, which shows flat growth compared to the previous year. At current share prices, the stock offers no further upside compared to its previously estimated fair value for 2026 of THB 54 per share.
Nevertheless, TCAP remains attractive as a high dividend-paying stock. The expected dividend payment for 2026 operations is THB 3.67 per share, representing a dividend yield of approximately 6.4%. Therefore, the brokerage maintains a ‘Trading’ recommendation.
