Thitikorn (TK), a hire-purchase company for motorcycles and cars, has revised up its lending growth target to 15% for this year, with motorcycle sales expected to hit a record 2.15 million units.
Managing director Prathama Phornprapha said outstanding hire-purchase loans are likely to be worth 8.7 billion baht at year-end, up from 7.57 billion baht at the end of 2011.
Motorcycle sales have recovered strongly after the impact of last year's heavy floods.
Domestic motorcycle sales totalled 1.8 million units in the first 10 months of 2012 as several new models were launched.
Sales are expected to hit a new high of 2.15 million units.
Deputy managing director Prapol Phornprapha said motorcycle industry growth is forecast at more than 5% next year. As a result, TK has revised up its 2012 lending growth from 10% earlier this year to 15%.
The company aims for hire-purchase loans to grow by at least 10% next year and reach 10 billion baht in 2014.
For the first nine months, TK posted a net profit of 510 million baht, higher than the 498 million baht during the same period last year. Full-year net profit will be higher than last year's level of 625 million baht.
Mr Prapol said motorcycle leasing companies are competing fiercely now, but TK has a clear policy of not competing on price.
It stresses service and cost management, using its listing advantage to raise low-cost funds from the capital market.
This year the company issued long-term bonds worth 600 million baht as a fixed cost and acquired additional credit lines worth 200 million baht from financial institutions.
TK shares closed Tuesday on the Stock Exchange of Thailand at 17.10 baht, down 10 satang, in trade worth 6.9 million baht.