Heng Leasing and Capital PCL

Heng Leasing and Capital PCL has a market price of 0.88 THB and a market capitalization of 3.35 billion THB, with a price-to-earnings ratio of 148.39 and a price-to-book ratio of 0.62. The company's debt-to-equity ratio is 1.78, indicating a relatively high level of leverage, and its current ratio is 1.0, suggesting limited short-term liquidity cushion. The company's return on equity is 0.42%, and return on assets is 0.15%, both significantly below the typical performance metrics for the consumer finance industry.

The company's operating income of 167.23 million THB and net income of 22.60 million THB reflect a narrow profit margin, with a net margin of approximately 3.0%. This is below the median net margin for the consumer finance industry, which typically ranges between 5% and 8%. The company's return on equity and return on assets are also below the industry median, indicating suboptimal capital efficiency and asset utilization.

Heng Leasing and Capital PCL's revenue is concentrated in its core consumer finance and leasing operations, with no disclosed geographic diversification. The company's total assets amount to 15.37 billion THB, with total liabilities of 9.93 billion THB, indicating a high degree of leverage. The company's revenue is primarily derived from domestic operations, with no material international exposure disclosed.

The company's growth trajectory is constrained by its low profitability and high leverage. Analysts have assigned a mean price target of 0.84 THB, slightly below the current market price of 0.88 THB, indicating limited upside potential. The company's operating cash flow of 164.63 million THB and free cash flow of 33.05 million THB are modest, with capital expenditures of -28.88 million THB indicating minimal reinvestment.

The company faces medium liquidity risk due to its high debt load and low cash reserves. The risk assessment indicates a low dilution risk, but the company's net cash position is negative after subtracting total debt, which could limit its ability to fund operations or growth initiatives. The company has not disclosed any recent equity issuance or dilution events, and its shares outstanding remain unchanged.

No recent events or filings have been disclosed that would significantly impact the company's operations or financial position. The company's capital structure and financial performance remain stable, with no material changes in its business model or strategic direction.

The stock trades at a 0.62 price-to-book ratio, indicating a significant discount to its tangible book value of 5.4 billion THB.

Cash conversion of 7.29 ranks as best-in-class within the consumer lending cohort, demonstrating superior cash generation efficiency.

Net income surged 941.2% year-over-year to 353.8 million THB, marking a substantial recovery in profitability.

Long-term debt decreased to 3.99 billion THB in FY0, reflecting a deliberate deleveraging strategy and improved balance sheet health.

Return on equity of 0.42% falls into the bottom quartile of the consumer lending cohort, indicating poor capital efficiency.

The company faces a high credit risk flag, suggesting potential vulnerabilities in its loan portfolio or counterparty exposure.

Net margin of 3.0% is in the bottom quartile of peers, highlighting weak profitability relative to the consumer lending sector.

Analysts assign a sell recommendation with a target price of 0.84, implying 4.5% downside from the current market price.

Revenue THB 640.6M; Operating income THB 190.7M.

• ▍Revenue THB 640.6M
• ▍Operating income THB 190.7M
• ▍Net margin 9.3%

Revenue THB 680.4M; Operating income THB 161.1M.

• ▍Revenue THB 680.4M
• ▍Operating income THB 161.1M
• ▍Net margin 2.9%

Revenue THB 722.1M; Operating income THB 104.2M.

• ▍Revenue THB 722.1M
• ▍Operating income THB 104.2M
• ▍Net margin -4.0%

Revenue THB 753.5M; Operating income THB 167.2M.

• ▍Revenue THB 753.5M
• ▍Operating income THB 167.2M
• ▍Net margin 3.0%

Revenue THB 2.11B, −24,7% YoY; Operating income −42,0% YoY.

• ▍Revenue THB 2.11B, −24,7% YoY
• ▍Operating income −42,0% YoY
• ▍Net income −53,4% YoY
• ▍Free cash flow +75,2% YoY
• ▍Net margin 1.6%

Revenue THB 2.80B, −0,5% YoY; Operating income −24,8% YoY.

• ▍Revenue THB 2.80B, −0,5% YoY
• ▍Operating income −24,8% YoY
• ▍Net income −82,7% YoY
• ▍Free cash flow −134,6% YoY
• ▍Net margin 2.6%

Revenue THB 2.81B, +36,5% YoY; Operating income +38,0% YoY.

• ▍Revenue THB 2.81B, +36,5% YoY
• ▍Operating income +38,0% YoY
• ▍Net income −8,5% YoY
• ▍Free cash flow −49,2% YoY
• ▍Net margin 15.0%

Revenue THB 2.06B, +30,6% YoY; Operating income +28,2% YoY.

• ▍Revenue THB 2.06B, +30,6% YoY
• ▍Operating income +28,2% YoY
• ▍Net income +30,3% YoY
• ▍Free cash flow +535,4% YoY
• ▍Net margin 22.4%