The SET-listed Thitikorn Plc (TK), the motorcycle and automotive hire-purchase lender, plans to open branches in four countries in the second quarter.
Locally, it will add 10 branches this year.
Deputy managing director Prapol Phornprapha said the company has already set up representative offices in the four countries pending licence approval _ Vietnam, Laos, Cambodia and Indonesia.
He said the motorcycle hire-purchase business in Thailand will continue to grow for at least the next five years.
Thitikorn's expansion to neighbouring countries, where the market remains small, is to maintain its lending growth rate at about 10% per year.
Revenue and profit from the foreign branches will be tiny in the beginning, in line with portfolios.
The company will try to control credit risk until it understands clients' behaviour.
"It may take us 6-12 months to understand the new markets. After that, we can increase loan amounts," said Mr Prapol.
This year Thitikorn projects revenue growth of 5-6% from last year's 3.66 billion baht.
Loans are projected to grow by 10% from 8.64 billion baht.
The 10 new local branches will bring the total to 94 under an investment budget of 30 million baht.
He said loans grew slowly during the first two months of this year.
However, the company still maintains a 20% market share thanks to expansion upcountry.
Its debt-to-equity ratio is 1.5 times, lower than the sector's average of 9.4.
The company has set aside provisions of 461 million baht for non-performing loans, which stand at 3.6% of total loans.
Last year, Thitikorn achieved revenue of 3.66 billion baht, up from 3.37 billion in 2011, for a net profit of 712 million, up from 625 million.
Shares of TK closed yesterday on the SET at 18.80 baht, down 1.10 baht, in trade worth 41.3 million baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter