|
Kasikornbank Pcl (SET:KBANK) is the fourth largest commercial bank in Thailand as measured by total assets, loans, and deposits with about 15% market share. KBANK provides a broad range of commercial banking, securities, and other related businesses. The bank, which is 48.98% owned by foreign investors as of April 6, 2016, operates 1,120 branches throughout Thailand and other countries, including China, Japan, U.S., Myanmar, Laos, Vietnam, Indonesia, Cambodia and the Cayman Islands.
The company said on April 20, 2016, that its first-quarter 2016 revenues were 39.75 billion baht, beating the 38.557 billion baht consensus estimate of 5 analysts, according to the Financial Times. The first-quarter 2016 EPS came in at 4.03 baht, beating the 3.90 baht consensus estimate of 5 analysts. KBANK said its non-performing loans (NPLs) increased 39.6% to 53 billion baht, forcing the bank to set aside loan-loss provisions of 11.29 billion baht for the quarter, compared to 4.01 billion last year, according to the Bangkok Post.
Mr. Admit Laixuthai, a senior vice president at Kasikornbank, told Reuters that "NPLs for the whole banking system are likely to rise further this year as the overall economy remains weak … I can't tell when NPLs will peak. It depends on the economic situation."
For 2015, KBANK reported a dividend of 4.0 baht a share, unchanged from 2014. The 23 analysts covering the company expect dividends of 4.16 baht a share for the upcoming fiscal year, representing a year-over-year increase of 3.98%. The next earnings announcement from Kasikornbank, for the second-quarter 2016, is expected on July 21.
From our technical viewpoint, shares of KBANK have been pulling back from the trendline resistance of the descending wedge chart pattern, and are now trading below the 200-day moving average. There are multiple supports at between the 154 and 160 baht levels, where the stock can bounce off. A bearish head and shoulders chart pattern has now emerged and thus, a significant downside risk rises if the 154 baht level can’t hold.
According to the Financial Times, the consensus amongst 26 polled investment analysts covering Kasikornbank gave the company an Outperform rating, with the median 12-month price target of 176 baht a share.
Disclosure: No position and no recommendation. |
