Kiatnakin Phatra Securities (KKPS) has maintained its ‘Buy’ recommendation on Krungthai Card Public Company Limited (SET: KTC), raising the price objective to THB 38.00 from THB 35.00, reflecting enhanced earnings prospects and a shift in valuation to 2027.
KTC’s strong performance in credit card spending, even amid sluggish overall consumption, is attributed to an upgraded customer mix, with higher-income cardholders now accounting for 20% of its portfolio. These affluent customers are driving increased spending, particularly in insurance – KTC’s largest spending category.
The company’s focus on quality over volume is evident in the growing divergence between spending and receivable growth, which is due to faster repayments from wealthier cardholders. This strategy supports lower credit cost assumptions. As a result, KKPS forecasts an average annual loan growth of about 1% for 2026-27 and rising to 1.9% in 2028.
For the second quarter of 2026, net profit is expected at THB 2.2 billion, a 1% increase quarter-on-quarter and 14% year-on-year, bolstered by tailwinds such as reduced funding costs, sustained card spending, and strong asset quality. The earnings outlook has been further adjusted to accommodate improved spending and lower expected credit costs.
KTC’s combination of sustainable growth, conservative risk management, and consistent shareholder returns cements its position as a top pick, with the revised price target reflecting both upgraded earnings and adjustments in valuation methodology.
