Leasing
Top picks: AEONTS, SINGER Neutral Approximately 18 million people would benefit from the tax refund policy for low incomers; B55.6bn/year will be injected into the system, benefiting leasing companies. We favor AEONTS and SINGER.
Leasing
- Tax refund for people with below B30,000/year income
The Fiscal Policy Office (FPO) has studied on tax refund for low incomers,
aiming to distribute income and support long-term sustainability for poor
people without populist policy. The FPO plans to propose the policy to the
NCPO and the new government as soon as possible. The tax refund depends
on tax rates determined by the Revenue Department. For employed people
aged 15-60 with less than B30,000/year (or B2,500/month) income, they
will be granted additional tax refund of 20% of their income. For employed
people aged 15-60 with over B30,000/year but less than B80,000/year
income, they will earn additional tax refund of 12% of their income that
exceeds B30,000. 18 million Thai people (27.5% of total Thai citizen) would
benefit from this policy; B55.6bn/year budget will be spent on it.
- TK, GL, AEONTS, SINGER to benefit most
The tax refund policy is expected to benefit retail leasing companies
(AEONTS and SINGER) and motorbike leasing companies (TK and GL) most;
the majority of their clients are low incomers. The policy would raise
consumer confidence and boost household spending, especially for AEONTS
(personal loan) and SINGER as most of their clients do not have reliable
financial documents. The policy is not likely to boost household spending
significantly in a short term because overall household debt has been very
high. However, the policy would sustainably increase household spending in
a long run; the tax would be refunded directly to the clients and lower risk
from uncertainty e.g. a decrease in income from OT or working hours.
- Top picks: AEONTS, SINGER
Leasing sector's top picks are AEONTS(FV@B121) and SINGER(FV@B25) for
their strong, diversified revenue structure and good upsides.
