Thanachart Capital Public Company Limited

Tris Rating has affirmed the corporate and senior unsecured debenture ratings of Ratchthani Leasing Public Company Limited, or THANI, at A- with a Stable outlook, and has upgraded the company's standalone credit profile, or SACP, to a- from bbb+, reflecting a stronger capital position at the Very Strong level as well as the company's ability to maintain its market leadership in commercial truck and luxury car hire-purchase lending. Kovit Rungwattanasophon, Chairman of the Executive Board, said that in the final stretch of 2026 the Thai economy is still recovering gradually, so the company is pressing ahead aggressively with its commercial truck hire-purchase lending business. Tris Rating views the first-half 2026 operating results as recovering better than expected, with the company reporting net profit of 700 million baht, up 31% from the same period a year earlier, driven by lower credit expenses and lower losses from vehicle repossessions. The net interest margin, or NIM, improved to 3.7%. Asset quality continued to improve, with the non-performing loan ratio, or NPL Ratio, falling to 2.4% at the end of June 2026 from 2.6% at the end of 2025, while new lending in the first half of 2026 rose about 20% from the same period a year earlier. New truck sales in the system expanded 24% in the first seven months of 2026. THANI is a strategically important subsidiary of Thanachart Capital Public Company Limited, or TCAP, which holds a 66.9% stake, and is a core business unit generating roughly 14% of the Thanachart group's profit as of the end of June 2026. The company has total credit lines of approximately 7.2 billion baht, of which about 57% remains undrawn.

Analysts upgraded TCAP shares to "Buy" and raised the target price to 105 baht, based on a PBV of 1.17 times, after revising up net profit forecasts for 2026-27F by 16% and 20% to 9.23 billion baht, up 19% year-on-year, and 9.6 billion baht, up 1% year-on-year, driven by better-than-expected non-interest income, particularly dividend income and insurance income, as well as lower-than-expected provisioning, equivalent to a full-year credit cost of 0.6%. The company also raised its dividend payout ratio to 57.5% from 50%, amounting to 5.06 baht per share, and has a share buyback program worth no more than 7.5 billion baht for 104.86 million shares, or no more than 10% of issued shares, between August 17, 2026 and February 16, 2027, which will help lift ROE by 1% to 10.4% by the end of 2027. Even though the share price has already risen more than 43% year-to-date and hit a 30-year high, the company still offers a dividend yield as high as 5.7-6.1% per year during 2026-28F. On the technical side, key support sits at 83.25-83 baht and resistance at 85, 87.25 and 89 baht.

Phillip Securities (Thailand) stated in its analysis that the dividend payout ratio of banking stocks that announced interim dividends for the first half of the year increased from the previous year. BAY increased to 26.1% from 18.6%, KKP increased to 70.4% from 51.4%, and TTB increased to 74% from 63.7%, while TCAP decreased to 33% from 36.1%. The research department expects that BAY and TTB are the most likely to increase their payout ratios this year. As for KKP, although its first-half payout was higher than the previous year, its high payout of 81.6% last year may limit further increases. TCAP, whose payout in 2025 was below the group average, still has room to increase. Compared with yesterday's closing price, KKP, which paid an interim dividend of 3.25 baht per share, has the highest dividend yield in the group at 2.8%, followed by TTB, which paid 0.081 baht per share, representing 2.7%, while BBL, which paid 2 baht per share, has the lowest yield at 1%. The research department maintains a neutral rating on the banking group. Although NPLs may increase, loans are still able to grow, and stable interest rates have caused interest rate spreads to begin to improve. It selects KBANK as the top pick. Although its payout is not the highest, it is expected to pay the highest dividend in 2026 at 15 baht per share, representing a dividend yield of 6%, and may also pay special dividends this year. Therefore, it recommends accumulating shares with a fundamental price of 261 baht.

PRG Corporation Public Company Limited (PRG) announced an interim dividend payment from first-half operating results at 0.38 baht per share, with the ex-dividend (XD) date set for September 17, 2026, and payment on September 30, 2026. Meanwhile, the board of directors approved for Fit Health 168 Company Limited (FH 168), a subsidiary in which PRG holds 52%, to lease land and buildings from NFS Asset Management Company Limited (NFS-AMC), a subsidiary of Thanachart Capital Public Company Limited (TCAP), for use as a medical clinic in Mueang Chiang Mai District, Chiang Mai Province. The total leased area is approximately 1,906 square meters, comprising about 1,238 square meters of building and surrounding area, and about 668 square meters of road and parking space. The lease term is 3 years, from February 1, 2027, to January 31, 2030. The total lease value is 4.21 million baht, with an average rental rate of 56.61 baht per square meter per month, or 107,899 baht per month. A security deposit of 323,697 baht, equivalent to 3 months' rent, will be placed. The contract is expected to be signed within September 2026, with funding from FH 168's internal working capital. The board and audit committee view the transaction as transparent, fair, and on arm's-length terms, which will help create new business and long-term returns for the group.

TCAP announced an interim dividend of 1.50 baht per share, higher than KSS's research department's expectation of 1.35 baht, representing a dividend yield of approximately 1.7%. The ex-dividend (XD) date is set for September 11, 2026, with payment on September 30, 2026. KSS maintains a "Buy" recommendation and a 2027 target price of 100 baht, believing that TCAP's dividends for 2026-2027 are likely to exceed the previous estimate of 3.60 baht per share, and there may be additional special dividends if no share buyback occurs. Meanwhile, ASL has raised its net profit estimates for 2026-2027 by 16% and 20% to 9.23 billion baht and 9.58 billion baht, respectively, and upgraded its recommendation to "Buy" with a target price of 105 baht, expecting a dividend yield of approximately 5.7-6.0% per year during 2026-2028.

Thanachart Capital Public Company Limited (TCAP) has announced a cash dividend payment at a rate of 1.50 baht per share, with the ex-dividend date (XD) set for September 11, 2026, and the dividend payment date on September 30, 2026, from retained earnings. The record date is September 14, 2026. The dividend is divided into 0.003 baht per share from profits taxed at 25%, 0.009 baht per share from profits taxed at 23%, 1.160 baht per share from profits taxed at 20%, and 0.328 baht per share from non-taxed profits, according to the resolution of the company's board of directors on August 31, 2026.

Analysts at DAOL Securities Thailand give a positive view on the banking group, which will announce interim dividend payments earlier than last year and with a greater chance than expected, because first-half 2026 profit was higher than estimated. Interim dividends will be announced starting from 25 August to 4 September 2026. They expect KKP, KTB, TCAP and TTB have a chance to pay higher first-half 2026 dividends than in first-half 2025. For first-half 2026 dividend yields, TTB is highest at 2.4%, followed by TISCO at 1.6% and TCAP at 1.55%. The dividend yield for 2026 remains high at around 6%, above the market average of 3%. At the same time, a new investment cycle will help support total loans in 2026 with a chance to beat expectations, mainly from large corporate and government loans. They maintain their 2026 net profit estimate for the banking group at 221 billion baht, down 1.5% because NIM has declined along with the recent downtrend in interest rates, but fee income is growing well from wealth management and provisions have decreased. They maintain an overweight rating because the banking group's average dividend yield is around 6%, higher than the stock market average of 3%. Valuation is still not expensive, trading at only 0.98 times price-to-book value, with KTB and KBANK as top picks.

Asia Plus Securities' research team said profits of 283 Thai listed companies out of 682 that have reported second-quarter results came in 11.9% above market expectations. Combined with estimates for the remaining companies, which cover 93% of market capitalisation, it assesses that total second-quarter profit could reach 355 billion baht, up 6.7% from the previous quarter and 8.2% from a year earlier. This raises expectations that second-quarter profit for fiscal 2026 may set a record high, continuing from the first quarter of fiscal 2026. The main growth drivers are petrochemicals, packaging and energy. Including commodity-linked groups such as energy, petrochemicals, food and agriculture, they would account for 44% of total market profit, compared with a normal level of about 30%. The research team views that first-half profit already represents 60% of the full-year target, reducing pressure in the third and fourth quarters and opening upside to the market-wide earnings per share estimate of 95 baht per share, which gives room for the index target to be revised upward. Meanwhile, foreign fund flows into the Thai stock market slowed clearly in August, with cumulative net selling of nearly 10 billion baht, while retail investors were net buyers supporting the index. The research team recommends three stock groups: companies with better-than-expected results such as IRPC, TCAP, KCE and CENTEL; companies benefiting from commodities and geopolitics such as TASCO, RCL, BCP and PTTGC; and companies expected to recover in the second half such as THAI, ERW and BCH. Its top three picks are PTT, BDMS and CENTEL.

Asia Plus Securities has upgraded its recommendation on TCAP to Buy, with a target price of 105 baht, after second-quarter 2026 net profit came in at 2.64 billion baht, up 25% from the previous quarter and 28% from a year earlier. The increase was driven mainly by non-interest income, including dividend income, share of profit from associates, and investment gains. Net interest income fell 5% from the previous quarter and 12% from a year earlier, as THANI tightened lending, causing net loans to decline 4.2% from the previous quarter and 5.7% from the start of the year. Interest expenses rose due to financial restructuring, but provisions fell 79% from a year earlier on better asset quality, representing a credit cost of 0.5%. The cost-to-income ratio was 12.3%, down from 13.0% in the previous quarter and 13.9% a year earlier. For the first six months of 2026, net profit was 4.77 billion baht, up 26% from a year earlier, equal to 52% of Asia Plus Securities' full-year net profit estimate. Asia Plus Securities raised its 2026 and 2027 net profit forecasts by 16% and 20% to 9.23 billion baht, up 19% from a year earlier, and 9.6 billion baht, up 1% from a year earlier, respectively, on better-than-expected non-interest income, especially a significant increase in dividend income and improved insurance income, as well as a smaller-than-expected decline in provisions, implying a full-year credit cost of 0.6%. It also raised its dividend payout ratio to 57.5% from 50%, equal to a dividend of 5.06 baht per share, and expects an interim dividend of 1.35 baht per share, representing a dividend yield of 1.5%. The share buyback program of up to 7.5 billion baht, covering 104.86 million shares or no more than 10% of paid-up shares, from 17 August 2026 to 16 February 2027, will help lift shareholder return by 1% to 10.4% by the end of 2027, supporting the share price and limiting downside risk. The target price of 105 baht is based on a price-to-book value of 1.17 times, assuming return on equity of 10.2% and cost of equity of 9.2%. Although the share price has already risen more than 48% from the start of the year and hit a new 30-year high, it still offers a high dividend yield of 5.7% to 6.1% per year during 2026 to 2028. On technical factors, the price has formed a double bottom and is holding clearly above the 5-day moving average. In the short term, it made a new high with a long white candle. Intraday support is at 88.25 to 88 baht. The trend is to continue rising within an uptrend channel, with resistance at 90 and 93 baht.

Thanachart Capital, or TCAP, reported first-half 2026 net profit attributable to the company of 4.765 billion baht, up 26.16% from the same period last year, driven by higher dividend income, insurance business revenue, and increased share of profit from associates, along with a significant decline in expected credit loss expenses. For the second quarter of 2026, net profit stood at 2.642 billion baht, up 24.45% from the previous quarter. The board approved a share repurchase program of up to 7.5 billion baht, with a maximum of 104.86 million shares, or no more than 10% of total issued shares, to be executed through the Stock Exchange of Thailand between 17 August 2026 and 16 February 2027, to enhance capital management efficiency and create added value for shareholders.

TCAP shares continued to climb more than 7% after the board approved a share repurchase program for financial management, with a budget not exceeding 7.5 billion baht. The company will buy back up to 104.86 million shares, representing no more than 10% of total outstanding shares, through the Stock Exchange of Thailand's automatic matching system between 17 August 2026 and 16 February 2027. Analysts at Krungsri Securities upgraded the stock to buy and raised the target price to 85 baht from 60 baht, citing a 5% dividend yield and the buyback program as supportive factors. Meanwhile, Dao Securities Thailand lifted its target price to 82 baht from 68 baht and forecast second-quarter 2026 net profit of 2.15 billion baht, above its previous estimate.

Thanachart Capital Public Company Limited, or TCAP, has announced a share repurchase program for up to 104.86 million shares, representing 10% of total issued shares, with a budget not exceeding 7.5 billion baht. The buyback will run from 17 August 2026 to 16 February 2027, using the automatic matching method through the Stock Exchange of Thailand's trading system. The move is modeled on the success of TMBThanachart Bank Public Company Limited, or TTB, in which TCAP holds a 24.37% stake. TTB's share buyback program significantly boosted its return on equity, earnings per share, and dividend payout ratio. In the first half of 2026, TTB posted a return on equity of 9.0% and earnings per share of 0.12 baht, compared with 0.10 baht in the same period a year earlier. As for TCAP's financial position as of 31 March 2026, it had unappropriated retained earnings of 71.724 billion baht, liquid assets of 9.079 billion baht, and liabilities due within six months of 2.33 billion baht. Analysts at Dao Securities assess that the buyback will support the share price and limit downside, raising their target price to 82 baht from 68 baht, and expect TCAP to pay a 2026 dividend of 3.60 baht per share, implying a dividend yield of about 5%. Meanwhile, Krungsri Securities has the highest target price at 85 baht. Following the announcement, TCAP's share price surged, hitting an intraday high of 79.00 baht before closing at 78.25 baht, up 7 baht or 9.82%, on turnover exceeding 1.844 billion baht.

The SET index closed on 31 July up 25.53 points at 1,623.64 points, with turnover of 89.032 billion baht. Buying came from foreign investors at 3.516 billion baht, funds at 2.037 billion baht, and broker portfolios at 493 million baht, while retail investors were net sellers of 6.046 billion baht. DELTA and electronics stocks such as HANA, KCE, and CCET were key drivers that pushed the index to close above 1,600 points. Meanwhile, THAI, which exits its trading suspension on 4 August, has up to 19 billion shares eligible for sale. An estimated 8 billion shares could be sold in the first minute by retail investors, funds, and insurance companies, while cooperatives and commercial banks that converted debt to equity at a cost of 2.50 baht are still weighing their decisions. TCAP closed at 78.75 baht, up 7 baht or 9.82%, hitting a 30-year high after the board approved a 7.5 billion baht share buyback programme between 17 August and 16 February 2026.