Company Coverage
Muangthai Capital (MTC TB): 2Q26: Results In Line With Consensus; Loans Continue To Grow qoq
BUY (Maintained)
Current price:
Target price:
Upside:
Bt35.25
Bt50.00
41.8%
Analyst
Highlights
- MTC reported a 2Q26 net profit of Bt1.9b, up 16% yoy and 5% qoq.
- Loan portfolio expanded by 8% yoy in 2Q26.
- Maintain BUY with an unchanged target price of Bt50.00.
Analysis
- 2Q26: Results in line with consensus. Muangthai Capital (MTC) reported a 2Q26 net profit of Bt1.9b, in line with market expectations but beating our forecast by 8%. The company’s net profit jumped 16% yoy and 5% qoq, and credit costs increased qoq. The NPL ratio increased slightly qoq in 2Q26. Excluding provision expenses, the company’s pre-provision operating profit rose 11% yoy and 7% qoq in 2Q26.
- Loan portfolio grew yoy. MTC posted a loan growth of 8% yoy and 3% qoq in 2Q26. The company opened 152 new network stores in 2Q26, bringing the total to 8,906 branches as at end-2Q26. MTC intends to open a new network of stores toward 9,000 branches in 2026. MTC set a loan growth target of 10- 15% for 2026. Meanwhile, the loan portfolio grew 3% yoy in 1H26. We foresee a 2026 loan growth of 10% yoy. We reckon MTC will continue to maintain a cautious lending to preserve good asset quality.
- NII grew yoy and qoq. MTC reported a net-interest income (NII) of Bt6.39b in 2Q26, increasing by 9% yoy and 4% qoq. The stronger NII was backed by the lower funding cost which resulted in a widened NIM from 13.5% in 1Q26 to 13.8% in 2Q26.
- Credit cost increased and NPL showed a slight pickup. The NPL ratio increased qoq from 2.57% in 1Q26 to 2.61% in 2Q26. Meanwhile, the NPL
amount went up by Bt199m qoq in 2Q26. The LLC ratio declined from 144% in 1Q26 to 132% in 2Q26. The company’s credit costs decreased 14bp yoy but increased 23bp qoq to 234bp in 2Q26. Management set a 2026 NPL ratio target not exceeding 2.55%. We believe MTC could maintain good asset quality through the ongoing concern about the Middle East conflict.
- The debtor condition needs to be cautiously monitored. Government relief programmes, low interest rates, and tech exports continue to support the economy. However, household purchasing power remains under pressure, and many debtor groups face slow income recovery that impairs their debt repayment ability. Consequently, MTC maintains a cautious lending strategy to manage asset quality risks. While short-term stability persists, ongoing monitoring is essential for risks stemming from weak debtor recovery, inflation, energy costs, and global volatility. With a good track record on controlling asset quality, we believe MTC will be capable of maintaining a decent portfolio quality during the economic recovery period.
Highlights
- MTC reported a 2Q26 net profit of Bt1.9b, up 16% yoy and 5% qoq.
- Loan portfolio expanded by 8% yoy in 2Q26.
- Maintain BUY with an unchanged target price of Bt50.00.
Analysis
- 2Q26: Results in line with consensus. Muangthai Capital (MTC) reported a 2Q26 net profit of Bt1.9b, in line with market expectations but beating our forecast by 8%. The company’s net profit jumped 16% yoy and 5% qoq, and credit costs increased qoq. The NPL ratio increased slightly qoq in 2Q26. Excluding provision expenses, the company’s pre-provision operating profit rose 11% yoy and 7% qoq in 2Q26.
- Loan portfolio grew yoy. MTC posted a loan growth of 8% yoy and 3% qoq in 2Q26. The company opened 152 new network stores in 2Q26, bringing the total to 8,906 branches as at end-2Q26. MTC intends to open a new network of stores toward 9,000 branches in 2026. MTC set a loan growth target of 10- 15% for 2026. Meanwhile, the loan portfolio grew 3% yoy in 1H26. We foresee a 2026 loan growth of 10% yoy. We reckon MTC will continue to maintain a cautious lending to preserve good asset quality.
- NII grew yoy and qoq. MTC reported a net-interest income (NII) of Bt6.39b in 2Q26, increasing by 9% yoy and 4% qoq. The stronger NII was backed by the lower funding cost which resulted in a widened NIM from 13.5% in 1Q26 to 13.8% in 2Q26.
- Credit cost increased and NPL showed a slight pickup. The NPL ratio increased qoq from 2.57% in 1Q26 to 2.61% in 2Q26. Meanwhile, the NPL
amount went up by Bt199m qoq in 2Q26. The LLC ratio declined from 144% in 1Q26 to 132% in 2Q26. The company’s credit costs decreased 14bp yoy but increased 23bp qoq to 234bp in 2Q26. Management set a 2026 NPL ratio target not exceeding 2.55%. We believe MTC could maintain good asset quality through the ongoing concern about the Middle East conflict.
- The debtor condition needs to be cautiously monitored. Government relief programmes, low interest rates, and tech exports continue to support the economy. However, household purchasing power remains under pressure, and many debtor groups face slow income recovery that impairs their debt repayment ability. Consequently, MTC maintains a cautious lending strategy to manage asset quality risks. While short-term stability persists, ongoing monitoring is essential for risks stemming from weak debtor recovery, inflation, energy costs, and global volatility. With a good track record on controlling asset quality, we believe MTC will be capable of maintaining a decent portfolio quality during the economic recovery period.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt35.25
Bt50.00
41.8%
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
