Bualuang Securities (BLS) has issued a ‘Buy’ recommendation for Krungthai Card Public Company Limited (SET: KTC), with a 2027 target price of THB 42.00 per share, citing three key factors that unlock potential upside for the company’s share price.
Firstly, KTC has tightened its credit underwriting standards and has consistently raised its loan-loss provisions. As a result, its coverage ratio has steadily increased, reaching 408%. This strong credit cushion means KTC is unlikely to require the elevated provisioning levels seen during 2024-2025. In addition, with inflationary risks subsiding, the brokerage expects KTC’s asset quality to remain robust throughout this year.
Secondly, Bualuang has revised its 2026 profit forecast for KTC upward by 5%, following a reduction in credit cost assumptions from 5.5% to 5.1%. This leads the brokerage to anticipate a record net profit of THB 8.5 billion for 2026, representing year-on-year growth of 9%. Profit projection is also 4% higher than the Bloomberg consensus, which, in Bualuang’s view, suggests that the market may revise earnings expectations for KTC upward after the company announces its 2Q26 financial results on Friday.
Thirdly, Bualuang expects KTC’s 2Q26 net profit to remain solid at THB 2.1 billion, reflecting an 11% year-on-year increase, driven by wider net interest margins and lower credit costs. However, net profit is expected to decline by 3% quarter-on-quarter, primarily due to higher credit costs compared to the previous quarter.
