THAILAND EQUITY RESEARCH 

 

Page | 1 | PHILLIP SECURITIES (THAILAND)  

Srisawad Power 1979 

3QFY15 net profit hits record high 

THAILAND | SET | FIN | COMPANY RESULTS BLOOMBERG SAWAD TB l REUTERS SAWAD.BK 

3QFY15 net profit up 64.9% y‐y, 27.1% q‐q, hits record high SAWAD’s  3QFY15 net profit hits  record high  at Bt370mn, up  64.9%  y‐y  and  27.1% q‐q,  as  interest  income  increased  in  tandem with  loan  growth, which  drove  non‐interest  income higher, and loan‐loss provision declined.  Loan on the rise but growth pace declines to the year’s lowest level, NPL to loan narrows Loan  continued  to  grow by 6.6% q‐q  in 3QFY15,  taking YTD  growth  to 33.3%. The pace of growth however declined  to  the year’s  lowest  level after SAWAD  registered  loan growth of 11.9% and 11.8%  in 1Q‐2QFY15. NPL rose to Bt527mn vs a 521mn  in  the prior quarter, but NPL to loan decreased to 5% from 5.3% in 2QFY15.  4QFY15 revenue seen up but profit likely to decline q‐q on higher expense We expect  revenue  to continue  to grow q‐q  in 4QFY15 as  loan  is  likely  to accelerate, given lower growth pace and holiday shopping season during  late year. However, net profit  looks likely  to  decline  as  operating  expenses  are  expected  to  increase  from  an  opening  of  new branches, marketing campaigns, and an annual bonus for employees.  FY15‐FY16  net  profit  forecast  revised  up  on  lower  provision  and  stronger‐than‐expected loan yield We  raise our  FY15‐FY16 net profit  forecast by 6.5%  and  13.7%  to Bt1.2bn  and Bt1.7bn  to reflect  its  lower  provision  due  to  effective NPL management,  and  stronger‐than‐expected loan  yield. We  also  increase  our dividend  assumption  to Bt0.49  and Bt0.65  for  2015‐2016 performances.  ‘BUY’ rating with a FY16 target price of Bt55/share Rolling forward to FY16 valuation, our target price is Bt55. We have a ‘BUY’ call for SAWAD as we  foresee  bright  earnings  growth,  given  strong  growth  in  retail  loan  and  its  new  nano finance business. 

                    

Ref. No.: CO2015_0838   

Closing Price(Bt) 45.75

Target Price(Bt) 55.00 (+20.22%)

COMPANY DATA

O/S Shares (mn) : 1,020    

Market Cap. (Btmn) :

Market Cap. (USDmn) :

52‐WK Hi/Lo (Bt) : 46.25/20.29

3M Average Daily T/O (mn) : 3.77

Par Value (Bt) : 1.00

MAJOR SHAREHOLDERS (%)

1. Miss Thida Keawbutta 37.2

2. Miss Duangjai Keawbutta 6.3

3. Mrs. Chariya Keawbutta 6.0

PRICE PERFORMANCE (%)

1MTH 3MTH 1YR

ABS 23% 20% 120%

REL TO SET INDEX 40% 38% 111%

PRICE VS SET INDEX

Source: Bloomberg, PSR

KEY FINANCIALS

FYE Dec FY13 FY14 FY15E FY16E

Revenue(Btmn) 1,707 2,471 3,371 4,220

Net Profit(Btmn) 575 855 1,242 1,664

EPS (Bt) 0.77 0.85 1.22 1.63

P/E (X) 59.6 53.5 37.6 28.1

BVPS (Bt) 1.44 3.43 4.54 5.68

P/B (X) 31.8 13.3 10.1 8.1

DPS (Bt) 0.17 0.15 0.49 0.65

Dividend Yield (%) 0.4 0.3 1.1 1.4

ROE  (%) 71.48 37.90 31.02 32.88

Debt/Equity (X) 5.56 2.50 2.43 2.39

Source: Company, PSR Est.

**Multiples and yields are based on latest closing price

VALUATION METHOD

PEG'16 (1x)

Adisorn Mungparnchon

Securities Investment Analyst # 18577

Tel: 66 2 635 1700 # 497

07 May 2015

Buy (Maintain)

16 November 2015

46,665                                              

1,299                                                 

0

20

40

60

Nov‐12 Nov‐13 Nov‐14 Nov‐15

SAWAD TB EQUITY SETI (rebased)

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 2 | P a g e   

Srisawad Power 1979 COMPANY RESULTS

Income Statement

Btmn 3Q15 2Q15 3Q14 q‐q+/‐ y‐y+/‐ 9M15 9M14 y‐y+/‐Interest income 749 652 511 15% 47% 2,009 1,401 43%Interest expense ‐76 ‐64 ‐48 19% 60% ‐204 ‐170 20%Net interest incom e 673 588 463 14% 45% 1,805 1,232 46%Other incom e 244 230 186 6% 31% 683 535 28%Total Non-Interest Income 244 230 186 6% 31% 683 535 28%Total Incom e 917 818 649 12% 41% 2,487 1,767 41%Operating expense 435 401 323 9% 35% 1,193 874 36%Pre provioning profit 482 418 326 15% 48% 1,294 893 45%Impairment loss of loans and debt securities ‐22 ‐51 ‐45 ‐58% ‐52% ‐120 ‐165 ‐27%Profit from operating before incom e tax expense 461 366 281 26% 64% 1,175 728 61%Taxation ‐91 ‐75 ‐57 21% 60% ‐236 ‐140 68%Minority 6 5 2 20% 200% 15 3 400%

Net profit  370 291 224 27% 65% 939 588 60%

EPS  (Bt) 0.36 0.29 0.22 27% 62% 0.93 0.65 43%

Key Financial Ratio

% 3Q15 2Q15 3Q14 q‐q+/‐ y‐y+/‐ 9M15 9M14 y‐y+/‐

Yie ld  on  Ea rning As s et 24.16% 23.19% 24.37% 4% ‐1% 23.92% 24.22% ‐1%

Cos t of Fund 15.76% 9.92% 4.79% 59% 229% 11.12% 5.92% 88%

Spread 8.39% 13.27% 19.58% ‐37% ‐57% 12.79% 18.29% ‐30%

NIM 21.69% 20.90% 22.08% 4% ‐2% 21.48% 21.25% 1%

NPL 5.00% 5.30% 6.36% ‐6% ‐21% 5.00% 6.36% ‐21%

Balance Sheet 

Btmn 3Q15 2Q15 3Q14 q‐q+/‐ y‐y+/‐ 9M15 9M14 y‐y+/‐

As se ts 12,365 10,806 7,626 14% 62% 12,365 7,626 62%

Lia bi l i ti e s 7,991 6,808 4,461 17% 79% 7,991 4,461 79%

Pa id ‐up  (mn  s hrs ) ‐ Pa r Bt1 1,020 1,020 1,000 0% 2% 1,020 1,000 2%

Equi ti e s 4,368 3,998 3,165 9% 38% 4,368 3,165 38%

BVPS  (Bt) 4.28 3.92 3.17 9% 35% 4.28 3.17 35%

D/E ra ti o 1.8 1.7 1.4 7% 30% 1.8 1.4 30%

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 3 | P a g e   

Corporate Governance ‐2014

BAFS BCP BTS CPN EGCO GRAMMY HANA INTUCH IRPC TOP

KBANK KKP KTB MINT PSL PTT PTTEP PTTGC SAMART IVL

SAT SC SCB SE‐ED SIM SPALI TISCO TMB THCOM SAMTEL

AAV ACAP ADVANC ANAN AOT ASIMAR ASK ASP BANPU BAY

BBL BECL BIGC BKI BLA BMCL BROOK CENTEL CFRESH CIMBT

CK CNT CPF CSL DELTA DRT DTAC DTC EASTW EE

ERW GBX GC GFPT GUNKUL HEMRAJ HMPRO ICC KCE KSL

LANNA LH LHBANK LOXLEY LPN MACO MC MCOT NBC NCH

NINE NKI NMG NSI OCC OFM PAP PE PG PHOL

PJW PM PPS PR PRANDA PS PT QH RATCH ROBINS

RS S & J SAMCO SCC SINGER SIS SITHAI SNC SNP SPI

SSF SSI SSSC STA SVI TCAP TF THAI THANI TSTE

TIP TIPCO TK TKT TNITY TNL TOG TRC TRUE

TSTH TTA TTW TVO UAC VGI VNT WACOAL

2S AF AH AHC AIT AJ AKP AKR AMANAH AMARIN

AMATA AP APCO APCS AQUA ARIP AS ASIA AYUD BEAUTY

BEC BFIT BH BJC BJCHI BOL BTNC BWG CCET CGD

CGS CHOW CI CKP CM CMR CSC CSP CSS DCC

DEMCO DNA EA ESSO FE FORTH FPI GENCO GL GLOBAL

GLOW GOLD HOTPOT HTC HTECH HYDRO IFS IHL INET IRC

IRCP ITD KBS KGI KKC KTC L&E LRH LST MAJOR

MAKRO MATCH MBK MBKET MEGA MFC MFEC MJD MODERN MONO

MOONG MPG MTI NC NTV NUSA NWR NYT OGC OISHI

PACE PATO PB PDI PICO PPM PPP PREB PRG PRIN

PTG QLT QTC RCL SABINA SALEE SCBLIF SCCC SCG SEAFCO

SEAOIL SFP SIAM SIRI SKR SMG SMK SMPC SMT SOLAR

SPC SPCG SPPT SST STANLY STEC STPI SUC SWC SYMC

SYNEX SYNTEC TASCO TBSP TEAM TFD TFI THANA THIP THREL

TIC TICON TIW TKS TLUXE TMI TMT TNDT TPC TPCORP

TRT TRU TSC TTCL TUF TVD TWFP UMI UP UPF

UPOIC UT UV UWC VIH WAVE WHA WIN WINNER YUASA

ZMICO

Score Range

< 50%

50‐59%

60‐60%

70‐79%

80‐89%

90‐100%

The disclosure of the survey result of the Thai  Institute of Directors  Association (IOD) 

regarding corporate governance is  made pursuant to the Office of the Securities  and 

Exchange Commission. The survey of the IOD is  based on the information of a  company 

l isted on the Stock Exchange of Thai land and the Market for Alternative disclosure to the 

public and able to be accessed by a  general  public investor. The results, therefore, is  from 

the perspective of a  third party. It is  not an evaluation of operation and is  not based on 

inside information.

The survey result is  as  of the date appearing in the Corporate Governance Report of Thai  

Listed Companies. As  a  result, the survey result may be changed after that data. Phil l ip 

Securities  (Thai land) of securities  company does  not confirm nor certify the accuracy of 

such survey result.

No logo given

Number of Logo

Results Presentation

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 4 | P a g e   

Industry Group Name Sector Name Sector Index

Agro & Food Industry[AGRO]  Agribusiness AGRI

Food & Beverage FOOD

Consumer Products[CONSUMP] Fashion FASHION

Home & Office Products HOME

Personal Products & Pharmaceuticals PERSON

Financials [FINCIAL] Banking BANK

Finance & Securities FIN

Insurance INSUR

Industrials [INDUS] Automotive AUTO

Industrial Materials & Machinery IMM

Packaging PKG

Paper & Printing Materials PAPER

Petrochemicals & Chemicals PETRO

Steel STEEL

Property & Construction[PROPCON] Construction Materials CONMAT

Construction Services CONS 

Property Development PROP

Property Fund & REITs PF&REIT 

Resources [RESOURC] Energy & Utilities ENERG

Mining MINE

Services [SERVICE] Commerce COMM

Media & Publishing MEDIA

Health Care Services HELTH

Tourism & Leisure TOURISM

Professional Services PROF

Transportation & Logistics TRANS

Technology [TECH] Electronic Components ETRON

Information & Communication Technology ICT

PSR Rating SystemCapital Gain Recommendation

      > +10% Buy

     0% to + 10% Neutral

       < 0% Sell

Remarks

We do not base our recommendations entirely on the  above quantitative return bands.  We consider qualitative factors like (but not limited to) a 

stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative 

undertones surrounding the stock, before making our final recommendation 

22776846