HoonSmart.com>>Stop panicking! OCPB to control new hire purchase contracts Do not charge interest more than 15% per annum, analysts expect the company to be fully affected. NCAP-TK-S11-AMANAH in the aspect of “Muang Thai Capital” reveals the car leasing. Motorcycles are only 3% of the portfolio. “Money on wheels” is not more than 0.5%, progressing comfortably. Nomura Securities expects the bank to not be affected Kasikorn Bank raises confidence in HENG Leasing and Capital Company (HENG) to buy 10% shares at a price of 1.95 baht.
On October 14, 2021, leasing stocks fell, led by NCAP, closing at 9.35 baht, falling -0.75 baht or -7.43%, TK closing at 8.85 baht, negative 0.20 baht or -2.21%. MTC closing at 60.50 baht, a decrease of 0.75 baht or – 1.22% SAWAD closed at 63.75 baht, a decrease of 0.50 baht or -0.78%, was affected by the Office of the Consumer Protection Board (OCPB) preparing to issue a contract for hire purchase of cars, motorcycles, tractors and agricultural machinery. to be a regulated business and will control the interest rate ceiling of not more than 15% per year and do not collect the remaining debt from the hirer to exercise the right to terminate the contract by delivering the car (Return the car, end the debt)
while the overall market is trying to be positive But found selling pressure, the index closed at 1,640.97 points, down 2.67 points, trading value 84,963.95 million baht, foreign investors bought 1,152 million baht, portfolios bought 829 million baht and Thai investors bought 347 million baht. 2,339 million baht
Mr. Paritat Petchampai Deputy Managing Director Muang Thai Capital (MTC) revealed that the company focuses on mortgage loans with collateral. There are very few hire purchase loans for cars and motorcycles, only 3% of the portfolio because they have only started doing it less than a year ago. The case of the OCPB therefore has little impact on the company and has no significance to the overall picture.
Mr. Piyasak Ukritnukul, President of Ngern Tid Lor (TIDLOR), said the company was not affected. Due to the new hire purchase portfolio in the category of cars, motorcycles, tractors and agricultural machinery does not exceed 0.5% of the new monthly loan portfolio. The operating outlook for the third quarter continues to grow satisfactory. Since September, demand for loans and insurance purchases has improved to near normal levels.
“Total revenue continues to grow and efficient management of operating expenses. especially, the financial cost has continued to decline. After leading the company Listed on the Stock Exchange of Thailand and TRIS Rating upgraded the company and senior debenture ratings. The Company’s unsecured collateral is A-level from A-level with a stable trend,” said Mr. Piyasak.
Overview of the car registration loan business in the last quarter of this year There is a strong growth trend and the company continues to expand branches. It is expected that by the end of this year, at least 200 new branches will be opened, and the number of branches nationwide will increase to nearly 1,300 from 184 in the first nine months of the past year, with 1,260 branches nationwide. branch
Mr. Wichai Suphasatitkul, co-founder and president of HENG Leasing and Capital Company (HENG), a major credit service operator in the North under the brand ‘Heng Leasing’, revealed that KASIKORNBANK (KBANK) Offered to purchase the existing shares of HENG from the shareholders of Thawee Heng and Patanasin Group through Big Lot amounting to 381 million shares or 10% at the same price as the IPO of 1.95 baht per share on the date of HENG. The shares were traded on the Stock Exchange of Thailand for the first day on October 19, making Kasikorn Bank Being the 2nd largest shareholder
In addition, the shareholders of Taweeheng Group will sell another 186,210,000 shares or 4.9% at the IPO price to 9 large investors for long-term investment with an agreement not to sell shares in 1 year
“Kasikorn Bank acquired HENG, reflecting confidence in the Company’s operational potential. and help strengthen to expand the customer base product development and new information technology platforms to meet all customer needs Create opportunities to access fair funding sources. It will be beneficial to shareholders, investors and create long-term growth,” said Mr. Wichai.
Mr. Korat Sawekrutmat Director of Analysis Department, KASIKORNBANK, said that the criterion that controls the interest ceiling at 15% of the OCPB has a direct negative impact on motorcycle hire purchase loan providers. As it normally charges interest at 24-30%, this affects NCAP as most of its portfolio comes from motorcycle leasing, including AMANAH.
As for the stocks that issue car registration loans And with portfolio expansion to provide hire purchase loans such as MTC, SAWAD, SAK and AEONTS, it may be affected by 3-4% of net profit while TIDLOR is not affected at all. Because the port is a pledge of all vehicle registrations. including truck loan services that is not affected by
“If such criteria are actually enforced It is seen as a major change in the hire purchase loan structure. and affect the overall economy as well. due to motorcycle sales and car sales will drop Hire purchase service provider need to compensate for the risk by increasing the down payment by about 30%,” said Mr. Korach
For a short-term investment 1-2 weeks, if the results are out and the impact is not as heavy as expected. Recommend short-term speculation NCAP and AMANAH. For medium- to long-term investment, we recommend “SWITCH” to buy unaffected stocks such as TIDLOR and ASK.
On the other hand, Mr. Nattapon Kamthakrua, Director of Securities Analysis Department of Yuanta Securities (Thailand), said that the measures taken by the OCPB will affect TK, S11 and NCAP companies. limited impact Because the interest rate is lower than the 15% threshold, and car registration loan providers such as MTC and SAWAD have a limited impact. Because most of the portfolios are car registration loans. There is a small percentage of hire purchase loans. The financial group’s profit forecast in the 3rd quarter will still be affected by the Covid-19 and in the 4th quarter, it may see a better recovery.
Investment does not recommend stocks in the finance sector. Because the share price has risen to a high in the previous period. And there is still no clear control of the interest ceiling. The impact cannot be assessed at this time. There is also an additional pressure factor. from high household debt and rising interest rates It recommends a group of banks that are more attractive, namely TISCO, which can be accumulating as it pays a good dividend. and paying a one-time dividend, and KKP expects the third quarter’s net profit to decline the least in the group. because there is income from the capital market to help compensate Both weak interest income and higher provisioning
Nomura Securities Pattanasin stated that the new hire-purchase contract had limited impact on the bank. The interest rate is lower than the ceiling, but there may be negative sentiment due to the high percentage of hire purchase loans, namely TISCO (25% of total loan portfolio), KKP (48%), TTB (25%). be a top pick
Nomura Securities Pattanasin has analyzed the new hire purchase contract with a Neutral perspective on the news. Because currently TISCO, KKP, TTB banks charge interest rates for new cars at around 3-5% per year and used cars at around 6-8% per year, which is lower than the new ceiling set at 15% per year and has a limited impact because