2023-08-25 04:41:03
Yesterday, TISCO announced an interim dividend payment at the rate of 2.00 baht per share, posted XD sign on September 6, which was part of the annual dividend. And not a special dividend, the broker said, would be a positive sentiment for the share price in the short term, with a target price of 111 baht, recommending “buy”.
Analysts at Finansia Syrus Securities Public Company Limited are of the opinion that TISCO announced an interim dividend payment of 2 baht/share for the first half of this year’s profit, representing a dividend yield of approximately 2% and a payout ratio of 44%. XD Sept 6th
This is the first payment in many years, which TISCO clarified that from now on it is likely to be paid twice a year, emphasizing that this payment is not a special dividend.
As for the 2023 dividend, it is expected to be no different from the estimate of 8 baht/share, representing a payout ratio of 86%. However, the weight of the dividend payment will fall on the second half of this year or equal to 6 baht/share, representing a dividend yield of approximately 6%. This interim dividend payment should be a positive sentiment for the share price in the short term. TP Bt111. Recommend BUY.
While the analyst view of Thanachart Securities Public Company Limited revealed that TISCO has been upgraded to a “buy” recommendation with a 13% upside from the new target price of 113 baht. Aim at high yield groups. And without affecting the company’s high ROE and dividend payout, we expect ROE to stand above 18% and a solid dividend yield of 8%.
Currently, TISCO has a strong balance sheet. Which believes it is ready to drive credit The company is turning to expanding large corporate loans. and increase high-yield auto cash loans With a substantial increase in the number of branches to 1,000 by 2025, TISCO targets loan growth of more than 5% per year from 2023-2025. 65 to 18%, 20% and 22% in 2013-2015.
Despite shifting its strategy towards stronger loan growth, TISCO remains ROE-focused, so the bank’s growing loan demand has not affected its ability to generate high ROE, considering its cash ratio. The bank’s strong fund at 17% is not expected to impede the company’s ability to pay a large dividend. Still assuming dividend payment at 85% throughout the research projection.
Therefore, with a high proportion of fixed interest rate loans Rising interest rates therefore affect TISCO’s spreads and net interest income. The resistance from the interest rate hike appears to be diminishing. The impact on TISCO’s NIM from an increase in finance costs in 2024 is expected to slow down.
Driven by consistent profit growth of around 6% per year from ‘2016-2015, along with a consistently high ROE of over 18% and a strong dividend yield of over 8%, the share price is steadily rising. 13% upside, therefore upgrading TISCO’s recommendation from hold to buy.
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