TQM lifts dividend payout above 100%, profit up 8%
Dividend policy raised to over 100% payout TQM will now pay out more than all of its yearly profit as dividends. Analysts expect yields of 7.7% to 8.2% through 2028, backed by cash at its units. This makes the stock more attractive to income investors and helped push one broker's target price up 20% to 19.1 baht.
This is the biggest new force behind the stock, directly raising expected shareholder payouts and the target price.
Q2 profit up 8% with better margins TQM's second-quarter profit rose 8% from a year earlier to 185 million baht. Renewal rates for auto insurance improved, health insurance grew sharply, and admin costs fell, lifting the profit margin. The company expects further recovery in the second half and high season in the fourth quarter.
It shows the core business is getting healthier, which supports the stock's value.
Second share buyback completed TQM finished buying back 12.5 million of its own shares, about 2.1% of all shares, spending 177.7 million baht. Buying back shares reduces the number outstanding, which can lift earnings per share and supports the stock price.
It is a completed capital return action that shrinks share count and supports the price.
Q2 profit missed estimates, margin slipped One broker noted TQM's Q2 profit was 7.8% below market expectations and gross margin fell to 45.1% from 46.8% a year earlier due to higher sales support costs. The broker still kept a buy rating and 20 baht target, expecting a second-half recovery.
It is the main counterweight: profit missed forecasts and margins narrowed, even though the broker stayed positive.