Download - TK oppday 57Q4
Thitikorn Public Company Limited1
Thitikorn Public Company Limited
“Motorcycle Hire- Purchase Specialist”
March 05, 2015
Thitikorn Public Company Limited2
I. Company Profile
II. Industry Overview
III. Operational Results
IV. Financial Highlights
Contents
Thitikorn Public Company Limited3
I.
Company Profile
Thitikorn Public Company Limited4
Company Development
1972 Established with 1MB registered capital to provide motorcycle HP in Bangkok
1982 No.1 in term of market share of motorcycle HPin Bangkok
1991 Increased registered capital to 70 MB
1995 Acquired 99.99% of CVA to expand HP business in Central and Eastern area
2000 Initiated motorcycle insurance program to minimize risk which later become the industry standard
2002 Received award from The Consumer Protection Board
2003 Acquired CYP to provide automobile HP
2003 Listed on the SET and raised fund of 1,100 MB
2005 Issued first TK’s Thai Baht-Debenture of 745 MB
2008 4-Stars Corporate Governance Scoring appraised by Thai Institute of Directors Association (IOD)
2010 Received Company Rating A- (Stable) from TRIS
2011 Acquired Cetelem (Thailand) Co., Ltd and changed its name to “TK Debt Services Co., Ltd.”
2012 Celebrate 40th year Anniversary
TK is one of the 17 listed companies to received an “Investors’ Choice Award” from Thai Investors
Association (TIA)
TK is one of the 9 Thai listed companies to be included in MSCI Small Cap Indices since November 30, 2012
2013 Total Assets surpassed 10,000 Mb for the first time
2014 First oversea operation in Cambodia, “Suosdey Finance” in Phanom Phenn
Second oversea operation in Laos, “Sabaidee Leasing Co., Ltd.” in Vientiane
TK is one of the 13 listed companies to received an “Investors’ Choice Award” from Thai Investors
Association (TIA)
Thitikorn Public Company Limited5
TK Group Structure
Motorcycle hire purchase provider
with 6,766 MB portfolio size
Thitikorn Plc. (TK)
Total net portfolio of 7,768 MB
* As of Dec 31, 2014
99.99%
99.99%
99.99%
98.00%
* Received License from Bank of Cambodia on August 5, 2014
Automobile hire purchase provider
with 999.5 MB portfolio size
Chayapak Co., Ltd. (CYP)
Debt collection servicer
(previously Cetelem Thailand)
TK Debt Services Co., Ltd.
Motorcycle hire purchase provider
with 1.4 MB portfolio size
Suosdey Finance PLC.
Debt collection servicer
C.V.A . Co., Ltd. (CVA)
Motorcycle hire purchase provider
with 0.5 MB portfolio size
Sabaidee Leasing Co., Ltd.
61.91%
* Received License from Bank of the Lao PDR on October 21, 2014
Thitikorn Public Company Limited6
Success Factors
Solid Capital Base : 4,002.6 million baht
D/E ratio of 1.2 times : average D/E of financial sector is 9.1 times
Abundant credit line from the leading financial institutions with
favorable terms & conditions
88.6 % of Total Assets are income generating assets
High quality motorcycle HP portfolio with 4.9 % NPL
Very conservative accounting policy : recognized full amount of commission on
day one
Stringent loan provision : reserve full amount of the whole contract value
A- rating by TRIS
Proven Track Record
Solid Financial Position
No.1 in motorcycle HP in Bangkok since 1982
Most recognizable brand by motorcycle dealers & customers
Reputable major shareholders - Dr.Chumpol Phornprapha & Families
Proven management with market expertise more than four decades in HP industry
Never been an NPL with any financial institutions since founded
Large valuable database of over 3,000,000 customers
Extensive & nationwide outlets with 90 branches in 53 provinces
Consistently provide HP service during any economic condition
Thitikorn Public Company Limited7
II.
Industry Overview
Thitikorn Public Company Limited8
Thailand Motorcycle Sales
Source : Thailand Motorcycle Hire Purchase Association, AP HONDA
78% 78%
79%
79%81% 79%
77%
77%
22%
22%
21%
21%
19%21%
23%
23%
1,595,305
1,741,749
1,553,561
1,846,005
2,001,244
2,125,646
2,004,000
1,699,218
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2007 2008 2009 2010 2011 2012 2013 2014(11M) 2015 (F)
BMA Provincial Area(Units)
~1,750,000
Q1548,965
Q1431,792
Q2445,208
Q2548,423
1,885,809
Motorcycle sales reached a
new record high for two
consecutive years in 2011
and 2012, however, 2013 and
2014 sales continue to
decline for two consecutive
years due to slow down in
economic activities for the
last 7 quarters.
Q3494,460
Q3447,131
Q4(2M)255,574
Q4(2M)293,961
Thitikorn Public Company Limited9
Monthly Motorcycle Sales
Motorcycle sale declined for
19 consecutive months from
May 2013 to November 2014
149,188
178,186
190,625
157,265
214,498213,724
187,266
179,417170,672
166,586
165,655
152,564
180,153177,736
191,076
169,031
189,056190,336
176,862
164,184
153,414151,101
142,860
118,191125,603
150,160
156,029
131,150
165,142
148,646
160,557
144,470142,104
135,076
120,498119,513
115,000
130,000
145,000
160,000
175,000
190,000
205,000
220,000
235,000
jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014(Units)
Thitikorn Public Company Limited10
Motorcycle Hire Purchase in BMA
78% 80%
78% 71%
61% 54% 49%
22%
20%
22% 29%
39%
46%51%
362,741
390,740
353,149
367,779
328,749
379,565 378,645
449,643454,263
340,095
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(11M)
Cash sale in BMA HP financing in BMA(Units)
(11M)424,782
Source : Thailand Motorcycle Hire Purchase Association
* Ratio H1 Year 2012 => Cash sale in BMA 49% , HP financing in BMA 51%
TK estimate that cash
sales portion remain at
35-40% due to tighten
lending policy from HP
operators in the first half
of 2014.
Thitikorn Public Company Limited11
Category : Automatic
Thitikorn Public Company Limited12
Category : Family
Thitikorn Public Company Limited13
Category : Sport/ F-Sport
Thitikorn Public Company Limited14
Motorcycle by Category
2% 8%15%
39% 47% 45% 46%51% 49% 48%
45%
39%
84%
90%
87%81%
58%
50%52%
50%
46%48%
49%
48%
50%
14%
7%
4%3%
2%
2%
2%
2%
1% 2%
2%
1%
1%1%
1%
1%
1%
2%
2%
3%
3%
5%
11%
1,328,194
1,767,074
2,043,634 2,109,227
1,976,493
1,595,305
1,741,749
1,553,561
1,846,005
2,001,244
2,125,646
2,004,000
1,699,218
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000Sport F-Sport Family Scooter
(Units)
Source : Thailand Motorcycle Hire Purchase Association, AP HONDA
Thitikorn Public Company Limited15
Thailand Automobile Sales
In 2012, Thai domestic auto sales reached a new
recorded high over 1.4 million units propelled by government first time car
buyer scheme.
In 2013 and 2014 automobile sales continue to decline for
two consecutive years
The Automotive industry latest forecast 2014 sales to
be approximately 900,000 units
Source : Toyota Motor Thailand Co.,Ltd.
71.5%61.0%
58.1%
56.7%54.6%
53.5% 52.6%
58.1%
28.5%39.0%
49.1%
43.3% 45.4%
46.5%
47.4%
41.9%631,251 615,269
548,871
800,357 794,081
1,434,669
1,330,678
881,832
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
2007 2008 2009 2010 2011 2012 2013 2014 2015(F)
Passenger car Commercial vehicle
Q1413,254
(Units)
~900,000
Q2 327,539
Q3 293,492
Q3 207,499
Q4 233,422
Q4 296,393
Q1224,171
Q2216,740
Thitikorn Public Company Limited16
Monthly Automobile Sales
Automobile sale declinedfor 20 consecutive months
from May 2013 to December 2014
76,246
90,457
110,977
87,788
115,943123,471
131,646
129,509132,874
142,839148,243
144,676
125,817
129,910
157,527
109,673111,848
106,018
98,258
100,28994,945
88,989
93,483
113,921
68,508
71,680
83,983
73,26069,681
73,799
69,527
68,835 69,137
70,85073,068
89,504
20,000
35,000
50,000
65,000
80,000
95,000
110,000
125,000
140,000
155,000
170,000
185,000
jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014(Units)
Thitikorn Public Company Limited17
Eco Car
Thitikorn Public Company Limited18
III.
Operational Results
Thitikorn Public Company Limited19
Hire Purchase Business
Business
Policy
Hire purchase provider for all brands
Focus on new motorcycle hire purchase
Hire purchase term of 24 - 30 months
All brands such as Honda, Yamaha,
Suzuki, Kawasaki, etc.Product
Brands
Categorized by Outstanding Duration
Hire purchase provider mainly
Brand new cars
(95% new cars and 5% second hand cars)
Hire purchase term of 36 - 60 months
All brands mainly Toyota, Isuzu,
Honda, Nissan, Ford, Mitsubishi etc.
Motorcycle Automobile
Categorized by Outstanding Duration
Hire Purchase
Account
Receivables
Balance as of
Dec 14
<=12 month
11.30%
>12 month
88.70%13-36 month
49.61%
<=12 month
7.85%
>36 month
42.54%
Thitikorn Public Company Limited20
Credit Policy
Customer Profile
Secured source of income and occupation
Clear hire purchase objective
Customize Terms and Conditions
Acceptable Guarantor
Not Recorded in TK’s Black List
Customer Residence in TK’s Coverage Area
Monitor Motorcycle and Automobile Model
as Per Standard Procedure
Proprietary credit approval policy and customize terms
and conditions for each customers
Thitikorn Public Company Limited21
Credit Approval & Control
Preliminary Credit
Checking
Record & Documentation
Checking
Credit Approval
Debt Settlement
Debt Collection
Potential customers apply for credit approval; review customers’ profile
Verify accuracy of customers’ profile and collect required documents
- Analyze customers’ credibility through credit scoring system and customize
net financing
- Transfer customer profile to company’s database for future reference
Provide multiple payment channels through bill collectors, banks, counter
service and internet
- unpaid debt <3 months --> payment warnings
- unpaid debt 4-6 months --> agreement termination
- unpaid debt >6 months --> bad debt write off
--> repossess and appraisal after verdict
Thitikorn Public Company Limited22
TK Branches & Networks
As of February 2015
Central
25 branches
North
11 branches
North-East
17 branches
East
27 branches
South
10 branches
Networks
Servicing over 1,032 motorcycle strategic alliances
Servicing over 45 automobile strategic alliances
Multiple payment channels
nationwide
Network
Branches
Extensive 90 branches in 53 provinces out of 77 provinces in
Thailand
Branch
Thitikorn Public Company Limited23
IV.
Financial Highlights
Thitikorn Public Company Limited24
Revenue, Expense and Net Profit
Slow down in economic activities since Q2 of 2013
together with negative growth in export and tourism sector as well as the
Ex-government inability to function properly due to prolong political
demonstration greatly reduced our customers payment ability
2,879
3,370
3,662
3,883
3,679
977 888
2,906 2,791
2,347
2,745 2,950
3,455
2,484
926810
2,5282,673
532.0625.0
712.0
429.0
195.6
51.0
78.0
378.1
117.5
-100
100
300
500
700
900
1,100
1,300
1,500
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2010 2011 2012 2013 2014 Q4/2013 Q4/2014 9M/20139M//2014
Total Income (LHS) Total Expense (LHS) Net Profit (RHS)
Unit : Mb Unit : Mb
Thitikorn Public Company Limited25
Revenue Breakdown
98.3% of Total Revenues contributed by Motorcycle HP Interest and Other Incomes
Q2/2014 Total Revenues = 928 MB
Motorcycle Hire Purchase Income
696 MB (75.0%)
Other Income
215 MB (23.1%)
Automobile Purchase Income
17 MB (1.9%)
Q3/2014 Total Revenues = 923 MB
Motorcycle Hire Purchase Income
679 MB (73.5%)
Other Income
228 MB (24.8%)Automobile Purchase Income
16 MB (1.7%)
Q4/2014 Total Revenues = 888 MB
Motorcycle Hire Purchase Income
665 MB (74.9%)
Other Income
208 MB (23.4%)Automobile Purchase Income
15 MB (1.7%)
Thitikorn Public Company Limited26
Revenue Breakdown
98.3% of Total Revenues contributed by Motorcycle HP Interest and Other Incomes
2013 Total Revenues = 3,883 MB
Motorcycle Hire Purchase Income
2,945 MB (75.8%)
Other Income
856 MB (22.1%)
Automobile Purchase Income
82 MB (2.1%)
2014 Total Revenues = 3,679 MB
Motorcycle Hire Purchase Income
2,758 MB (75.0%)
Other Income
855 MB (23.2%)Automobile Purchase Income
66 MB (1.8%)
2012 Total Revenues = 3,662 MB
Motorcycle Hire Purchase Income
2,623 MB (71.6%)
Other Income
958 MB (26.2%)Automobile Purchase Income
81 MB (2.2%)
Thitikorn Public Company Limited27
Total Assets vs. Hire Purchase Account Receivables
88.6% of TK Total assets are HP portfolio which
generate stable monthly cash inflow from monthly installment from diversify
customers over 255,947 accounts
6,0116,962
7,5768,648 9,059
7,768
635
716
1,105
9751,208
999
6,646
7,678
8,681
9,62310,267
8,767
0
2,000
4,000
6,000
8,000
10,000
12,000
2009 2010 2011 2012 2013 2014
Receivables OtherUnit : Mb
15.8%
8.8%
14.2%
4.8%-14.3%
Thitikorn Public Company Limited
> 6 mth0.8%
<3 mth95.2%
Aging of Motorcycle 2014
4-6 mth4.0%
5,5036,157
7,1517,708
6,768
0
1,500
3,000
4,500
6,000
7,500
9,000
2010 2011 2012 2013 2014
Motorcycle HP portfolio Unit : Mb
1,459 1,4201,497
1,351
999
0
500
1,000
1,500
2,000
2010 2011 2012 2013 2014
-9.8%-26.1%
-2.7%5.4%
Automobile HP portfolio Unit : Mb
7.8%-12.2%
11.8%16.1%
* Net HP recievable (less allowance for doubtful a/c)
4-6 mth2.3%
>6 mth4.1%
<3 mth93.6%
Aging of Automobile 2014
High Quality HP Portfolio
* HP recievable
28
Thitikorn Public Company Limited29
High Quality HP Portfolio
Prudent expansion policy with strict credit approval process and strong collection team
create sustainable HP portfolio.
2014 : Aging of Total HP Portfolio (8,303 MB)
Current -3 mth
7,890 MB (95.1%)
> 6 mth
102 MB (1.2%)
4-6 mth
311 MB (3.7%)
2012 : Aging of Total HP Portfolio (9,109 MB)
Current -3 mth
8,780 MB (96.4%)
> 6 mth
104 MB (1.1%)
4-6 mth
225 MB (2.5%)
Current -3 mth
9,202 MB (95.6%)
> 6 mth
128 MB (1.4%)
4-6 mth
293 MB (3.0%)
2013 : Aging of Total HP Portfolio (9,623 MB)
Thitikorn Public Company Limited30
Stringent Accounting Policy
Past due over 3 months will be charged off
One time commission charged at the beginning of the contract
Motorcycle with past due over 6 months will be written off (without verdict process)
Automobile with past due over 6 months that had gone through verdict will be written off
Income Recognition and
Charge-Off Policy
Write-Off Policy
Provision for Doubtful
Account Policy
TK does not deduct the
collateral value before
setting provision for
motorcycle HP
Provision for Doubtful Account of Motorcycle Hire Purchase
Net Account Receivables
Current portion < 1 Months
1 < Overdue < 3 Months
3 < Overdue < 6 Months
Overdue > 6 Months
1
20
50
100
Provision for Doubtful Account of Automobile Hire Purchase
Provision for Doubtful Account (%)
Provision for Doubtful Account (%)Net Account Receivables
Current portion < 1 Months
1 < Overdue < 3 Months
3 < Overdue < 6 Months
6 < Overdue < 12 Months
Overdue > 12 Months
1
2
20
50
100
Thitikorn Public Company Limited31
High Coverage Ratio
Robust reserve for loan loss with 129% coverage
ratio or 6.4% of total HP portfolio
7,328
7,957
9,109
9,624
8,303
117 78 104 129 102257 343 329 422 413366 381 461 565 535
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2010 2011 2012 2013 2014
Net HP A/R NPL (>6 mth) NPL (>3 mth) Loan provision
Unit : Mb
Thitikorn Public Company Limited32
Dividend
Year Operation Net Profit (MB)
Earning per share
Dividend per share
Dividend Dividend Last Price (Baht)
Dividend Yield
Period (The Company Only)
(Baht) (Baht) (MB) Payout Ratio As of XD
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1 Jan 03- 31 Dec 03
1 Jan 04- 31 Dec 04
1 Jan 05- 31 Dec 05
1 Jan 06- 31 Dec 06
1 Jan 07- 31 Dec 07
1 Jan 08- 31 Dec 08
1 Jan 09- 31 Dec 09
1 Jan 10- 31 Dec 10
1 Jan 11- 31 Dec 11
1 Jan 12- 31 Dec 12
1 Jan 13- 31 Dec 13
1 Jan 14- 31 Dec 14
391.2
422.9
345.7
248.6
273.8
313.2
318.6
516.9
491.2
703.2
374.0
161.4
0.78
0.85
0.69
0.50
0.55
0.63
0.64
1.03
0.98
1.41
0.75
0.32
0.35
0.38
0.40
0.30
0.32
0.34
0.36
0.52
0.58
0.80
0.43
0.18
175.0
190.0
200.0
150.0
160.0
170.0
180.0
260.0
290.0
400.0
215.0
90.0
44.73%
44.93%
57.85%
60.34%
58.44%
54.28%
56.50%
50.30%
59.04%
56.88%
57.49%
55.76%
9.60
6.65
4.52
3.32
3.90
2.88
4.36
8.40
11.40
18.80
8.85
11.00
3.65%
5.71%
8.85%
9.04%
8.21%
11.81%
8.26%
6.19%
5.09%
4.26%
4.86%
1.64%
Thitikorn Public Company Limited33
Investors’ Choice Award 4 consecutive years
Thitikorn Public Company Limited34
Investors’ Choice Award 6 consecutive years
Thitikorn Public Company Limited35
Strictly Private & Confidential
Thitikorn Public Company Limited
69 Ramkamhaeng Rd., Huamark, Bangkapi, Bangkok 10240
Tel: 662-310-7000 Fax: 662-318-3339
e-mail: [email protected]