Jul 17, 2013

Krung Thai Bank stock reaction to debtor concerns

On Tuesday 16 July, Krung Thai Bank shares dived 3.59% to close at 18.8 baht over the prospect of high loan loss provision as its borrower Saha Farms Group faced financial difficulties.

KTB has a low non-performing loan coverage ratio of 95% in 1Q compared to industry average of 127%. According to Phillip Securities, they reckon KTB may have to increase their provision in 2Q.

Saha Farms Group is one of the leading chicken exporters in Thailand with 22% market share of total exports. Saha Farms export mainly to Japan, England, Germany, and China, to name a few countries.

Saha Farms faces a liquidity crunch due to incurring losses in 2012 due to increased costs of operations from wages to animal feed. Expenses arising from its business expansion activities the past few years coupled with a downtrend in chicken exports came at the wrong time for Saha Farms.

KTB is Saha's largest lender, accounting for about a 5 billion baht credit line. Thanachart and the Islamic Bank of Thailand are the two other major creditors. Saha will allow the banks to control its financial management until debt restructuring is complete and it gets back on its feet. Debt restructuring details are expected to be worked out within the next 2 months.

KTB believes Saha's business remains viable due to its pipeline of current orders, and with an increase in liquidity, it can fix the business. 

I believe this issue with Saha Farms should not affect KTB much and it ended up trading flat today amid a slight recovery, +1.06% to close at 19.00 baht today. The reaction was not big enough to cause a strong dip, thus it did not present an attractive price to increase my holdings.


  1. hi
    how do we buy thai stocks in sg ?
    heard local brokers have to buy offline n the com charges quite high
    pls share your portfolio in thailand, keen.

  2. Hi Shuaka,

    Thanks for reading, I have created a post to reply you as I have included some images

  3. With Gain Credit Personal Loans, you can get instant loan/money for a wide range of your personal needs like renovation of your home, marriage in the family, a family holiday, your child's education, buying a house, medical expenses or any other emergencies. With minimum documentation, you can now avail a personal loan at attractive 3% interest rates. This is trust and honest loans which you will not regret, Contact us via Email: gaincreditloan01@gmail.com

    Your Full Details:
    Full Name. . .. . .. . .. . .. . .
    Loan Amount Needed. . ...
    Loan Duration. . .. . .. . .. . .
    Phone Number. . .. . .. . ..
    Applied before. . .. . .. . ..
    Country. . .. . .
    Email Us: gaincreditloan01@gmail.com


  4. Do you need personal loan? Does your firm,company or industry need financial assistance? Do you need finance to start your business? Do you need finance to expand your business? We give out loan to interested individuals who are seeking loan with good faith. Are you seriously in need of an urgent loan contact us at Email: flourishloancredite@gmail.com
    Your Full Details:
    Full Name:
    Loan Amount Need:
    Loan Duration:
    Phone Number:
    Applied before?
    Monthly Income:
    You are to send this to our Company Email;flourishloancredite@gmail.com


Crystal balls and smoke

It's that time of year again, where we put everything down and engage in that archaic ritual of crystal ball gazing. Simply put, it...