SET-listed Thitikorn Plc (TK), a provider of hire purchase for motorcycles, is targeting 10% revenue growth in 2018 from 3.65 billion baht last year. That growth is projected to come by driving up the share of foreign market revenue from 5% to 50% in the next three years.
The company will focus its efforts on increasing sales from Cambodia, Laos, Myanmar and Vietnam (CLMV) and undertaking joint ventures or mergers and acquisitions (M&A) to increase its customer base.
"It is a good time for M&As given the high interest rates," said deputy managing director Praphol Phornprapha.
TK, the country's largest hire purchase provider, is planning to open four to five branches in Thailand, as well as three in Cambodia and two in Laos.
In Myanmar, TK was awarded a micro-finance licence by the government. TK recently issued 600 million baht in three-year debentures to fund expansion.
Projected loan growth increased from 9.03 billion baht last year to 10 billion in 2018, said Mr Praphol.
"This year we set an initial growth rate target of 10%, and aim to grow our overseas business to [account for] half of our revenue by 2020, up from 5% today," he said.
TK plans to invest more than 60 million baht for its network and IT expansion, especially through its mobile application.
The company also expects to invest in human resource development to promote stable growth, said Mr Praphol.
The motorcycle market is projected to continue growing in line with the Thai economy, which expanded 3.9%.
For this year, the Bank of Thailand adjusted GDP growth from 3.9% to 4.1%, based on a 7% export growth outlook.
Moreover, more than 35 million tourists visited Thailand last year -- a record high.
In excess of 7 million tourists visited Thailand in the first two months this year, up 14.9% from the same period of last year.
The government has also implemented a number of megaprojects this year that are projected to increase the GDP by an additional 0.5%.
The agriculture sector will benefit from the US$60-per-barrel oil price and reduced household debt, which fell from 81.2% of the GDP in 2015 to 78.3% in the third quarter of last year, encouraging people to spend more this quarter, said Mr Praphol.
"Motorcycle makers are planning to introduce at least 14 new models to the market this year, which should spur the local market to grow more rapidly," he said.
"Makers hope the bike market will grow to 1.87 million units this year, which will push the hire purchase motorcycle sector to grow in kind. TK expects the portfolio to grow to 10 billion baht this year."
Managing director Prathama Phornprapha said TK generated 399 million baht in revenue last year from Cambodia and Laos only, some 5% of TK's total revenue, and 35 million in profit.
Last year the company's total revenue grew 8.4% to 3.65 billion baht, while its net profit increased 8.4% to 467 million.
TK's customer portfolio grew by 16.9% -- four times the growth rate of the motorcycle market -- which allowed it to pay a 0.52 baht per share dividend.
The company's total assets topped 10.0 billion baht, a 16.3% increase from the year before.
