CIMB Research raised its price target for Tisco Financial
Group Pcl to 57 baht from 55 baht after the financial
firm reported a better-than-expected fourth quarter net profit.
It maintained a 'neutral' rating.
On Friday, Tisco shares closed down 0.5 percent at 54.25
baht before it announced the quarterly earnings. It was up 4.3
percent since the start of the year versus a 0.3 percent gain of
the broader banking subindex.
Tisco reported a quarterly net profit of 995 million baht
($32.86 million), up 47 percent year-on-year and up 4 percent
quarter on quarter. The result was 4 percent higher than the
broker estimate because of a strong fee income.
"The quarter was fairly representative of the full year
which saw explosive loan growth but net interest margin (NIM)
stress. From mid-13, the reverse could be the case as new loans
will be scarcer but NIM should improve," it said in a report.
"Despite the near-term attractive earnings outlook and
tempting valuations, we keep the stock at neutral as its
longer-term return on equity (ROE) sustainability is in doubt,"
0933 (0233 GMT)
For the company statement, click
(Reporting by Viparat Jantraprap in Bangkok; Editing by
($1 = 30.28 baht)