SET-listed Srisawad Power 1979 Plc (SAWAD) is keen to acquire other retail lenders and branch out into new business by buying distressed assets worth 1 billion baht next year in an attempt to boost growth.
The vehicle hire-purchase company is in talks with several lenders, said director Thida Kaewbootta.
"We are in the process of negotiations, so we can't tell whether the talks will reach a successful conclusion," she said.
Srisawad also plans to manage bad debts by acquiring distressed assets worth 1 billion baht from banks at a negotiable price, Ms Thida said.
It has already set up a debt collection unit to manage debtors' assets. It will also become an insurance broker.
Srisawad targets revenue growth of 20-25% as it opens 200 more branches next year. Its number of branches has risen from 650 to 1,000 this year.
To grab opportunities from the launch of the Asean Economic Community late next year, the company is studying whether to expand in the region. However, the domestic market will remain its main focus.
Ms Thida said Srisawad had an expansion target of 25-30% in the value of its loan portfolio next year from 7 billion baht now.
About 57% of loans are for cars, with the remainder for motorcycles.
The company aims to maintain the ratio of cars and motorcycles in the future because their interest rate margins are very similar.
Srisawad has about 200,000 accounts, with car loans generally in the range of 100,000 to 200,000 baht and motorcycle loans averaging 10,000 baht.
Ms Thida said the company's car and motorcycle loan business was resilient to the country's economic doldrums due to strong demand from its customer group.
However, in a prudent move, Srisawad has limited the loan amount to 50% of the vehicle value's with the aim of maintaining non-performing loans at 4% this year.
"Our business has nothing to do with politics, economics and the currency. Whenever we can control bad loans, we can grow as expected," Ms Thida said.
Separately, the company also plans to issue bonds worth 2 billion baht to specific investors through private placement.
The two-year bond is expected to be offered early next year and proceeds from the bond issuance will be used to fund its business expansion plan.
SAWAD shares closed yesterday on the Stock Exchange of Thailand at 24.40 baht, down 40 satang, in trade worth 472 million baht.