On Friday, the share price of Tidlor Holdings Public Company Limited (SET: TIDLOR) at the time of 2.21 p.m. was at THB 19.60, a THB 0.40 or 2.08% increase with a total trading value of THB 437.56 million.
Bualuang Securities (BLS) noted that the earnings outlook for TIDLOR in 2Q26 is expected to post a net profit of THB 1.5 billion, up 14% year-on-year, supported by an expanding net interest margin (NIM) and lower provisions, despite an 8% quarter-on-quarter decline due to increased provisioning compared to the previous quarter.
Total loans are expected to reach THB 111.6 billion, up 5.4% YoY and 1.5% QoQ. NIM is forecast at 16.16%, an increase of 52 basis points YoY, driven by higher loan yields and lower funding costs. Asset quality in 2Q26 is expected to see non-performing loans (NPL) slightly edge up to 1.50%. The NPL coverage ratio is estimated at 333.3%, a slight decrease from 340.5%. Provisioning ratio is forecast at 2.40%, down from 2.63% in the same period last year, reflecting continued robust asset quality despite ongoing economic uncertainty.
Asset quality has continuously improved, following the company’s cautious lending policy adopted since 2024, resulting in a reduced NPL ratio to 1.47% and a higher NPL coverage ratio at 340.5%, up from 230.6%, highlighting a solid provisioning position.
As of end-March 2026, TIDLOR’s loan loss reserve to gross loan ratio stood at 5.0%, marking a five-year high and significantly above the 3.6% sector average for vehicle title loans tracked by the analyst firm. The company is expected to maintain this reserve level through end-2026, eliminating the need for additional provisions. As a result, provision expenses are likely to decline in the second half of 2026 compared to the previous year, potentially giving full-year net profit a 3% upside.
Meanwhile, pressures from the used truck hire purchase business have started to ease. This portfolio, accounting for 7% of total loans, was valued at THB 8.1 billion at end-March 2026, a 0.7% increase from the prior quarter—the first growth in two years. NPLs for this segment decreased from 3.07% at end-June 2025 to 2.13% at end-March 2026, indicating a steady recovery in asset quality.
