On Thursday at 10:57 AM (Bangkok time), the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) gained 3.46% or THB 0.80 to THB 23.90, with a trading value of THB 275.80 million.
Pi Securities has issued a ‘Buy’ recommendation for SAWAD, with a target price of THB 26.00 per share. The brokerage forecasts that the company’s total loan portfolio will expand by 10-15% in 2026, primarily focusing on growth in its title loan segment.
ASL Securities stated that SAWAD has fully entered a new phase of profit expansion, following the successful resolution of non-performing assets, with over 95-99% of legacy bad debts now cleared. This clean-up has resulted in a notable recovery in the company’s performance for the first quarter of 2026.
Furthermore, Fitch Ratings has upgraded SAWAD’s credit rating to A-(tha), a development that is expected to significantly lower the company’s financial costs. This year, SAWAD has outstanding debentures with relatively high interest rates of around 4.00-4.90%, totaling approximately THB 8-10 billion, which are set to mature. The company is positioned to refinance these debentures at a new, lower rate of about 2.85%. This reduction in financing costs is anticipated to support a continued expansion of the company’s net interest margin.
To drive growth amid persistently high household debt levels, SAWAD has adopted a ‘Selective Growth’ strategy. The company aims for its loan portfolio to expand by 5-10%, focusing mainly on high-yield, secured vehicle title loans, which now account for over 73% of its total loan book. At the same time, the company is seeking to diversify revenue streams by expanding its insurance brokerage business, particularly in electric vehicle insurance and health insurance products, which are cross-sold to existing lending customers. SAWAD targets a 15-20% increase in this segment’s revenue within the year.
Additionally, SAWAD’s debt-to-equity ratio stands at only 1.53x, indicating ample headroom to pursue further loan expansion without the need to raise additional capital. The company is therefore well-positioned to weather economic volatility better than many of its peers. Management has also signaled the possibility of considering an interim dividend payment after the third quarter, supported by its strong liquidity position.
SAWAD operates a nationwide network of more than 5,823 service branches. This extensive coverage enables the company to directly reach grassroots customers and could allow it to benefit from government economic stimulus measures, such as the ‘Thai Chuay Thai Plus’ program, which aims to increase liquidity and customers’ repayment capacity within the financial system.
