AEON Thana Sinsap (Thailand) Public Company Limited, or AEONTS, reported net profit of 642 million baht for the second quarter of 2026, ended August 2026, down 18.8% year on year and 19.0% quarter on quarter, missing market expectations by 17.9%. The main pressure came from a surge in bad debt in the used-car hire-purchase segment in both Thailand and Cambodia, pushing the Stage 2 loan ratio up to 3.3% and lifting non-performing loans, or Stage 3, to 5.9%. As a result, provisioning jumped 25.9% quarter on quarter to 2.061 billion baht, with credit cost reaching 9.7%, the highest in 25 quarters. The company has therefore temporarily suspended used-car lending to revise its criteria. Yuanta Securities (Thailand) expects third-quarter 2026 profit to fall both year on year and quarter on quarter amid the used-car bad debt problem and the impact of major flooding, before beginning a quarter-on-quarter recovery in the fourth quarter of 2026. It maintained its full-year 2026 net profit forecast at 2.973 billion baht, down 3.8% year on year, with a return to 6.6% year-on-year growth in 2027. The company also declared an interim dividend of 3.00 baht per share, a dividend yield of 3.3%, above its usual payout of around 2.55 baht. The research team kept its rating at Trading Only, with a target price of 106.00 baht, even though the stock offers 17.5% upside from its closing price of 90.25 baht, preferring to wait for positive developments in the bad debt portfolio before making a fresh investment.
AEON Thana Sinsap (Thailand) Public Company LimitedQ2 2026 net profit fell 18.8% YoY and missed expectations by 17.9% as provisions jumped 25.9% QoQ on surging used-car bad debt.
