Thanachart Capital
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A quarter to forget Outperform - maintained Share price: Bt 25.50 Target price: Bt 34.00
Thanachart Capital Plc (TCAP)
TCAP ended 2011 on a weak note as the flood impact and higher funding cost dampened its 4Q11 net profit, which came in 20% below our forecast. We expect earnings growth to resume this year as the bank shifts to a higher gear post internal business consolidation. Building in the planned FIDF tax on deposits and B/Es, we cut our FY12-13 by 6%. This also leads to our lower target price, which is still based on 1.1x FY12F P/BV (GGM with long-term assumptions of 12% ROE, 11.7% COE and 6% growth. Maintain OUTPERFORM.
