Thanachart Capital

Thanachart Capital Plc (TCAP)
 

While TCAP’s 1Q12 operations rebounded from the flood-hit 4Q11, the recovery was only gradual as its lending business still failed to match the solid showing of the fee-based one. That said, we believe TCAP’s growth momentum is positive and is on course for a full blossom. Although the in-line 1Q profit made up 23% of our full-year, the operating outlook has improved, prompting positive fine-tuning of our forecasts. Our target price, still set at 1.1x FY12F P/BV (GGM assuming 12% ROE, 11.7% COE and 6% growth), rises in tandem. Maintain Outperform.