Thanachart Capital
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The last one on discount Outperform Share price: Bt26.25 Targer price: Bt35.00
Thanachart Capital Plc (TCAP)
What made TCAP the only bank with a profit contraction last year are about to pass. Internal consolidation is mainly completed, allowing focus to shift to growth. These potential improvements seem unnoticed as the stock remains the only bank trading at a discount to book. We initiate coverage on TCAP with an OUTPERFORM call. Our target price is based on 1.1x FY12F P/BV, which in turn is derived from GGM with long-term assumptions of 12% ROE, 11.7% COE and 6% growth. The resumption in earnings growth is a re-rating catalyst.
