XSpring Capital Public Company Limited

XSpring Asset Management, or XSpring AM, has upgraded its view on Thai equities to Neutral, setting a target for the SET Index of 1,650 points this year and 1,700 points next year. Chief Executive Officer Yossakorn Follett said global markets still face high volatility from geopolitical risks, particularly the conflict in the Middle East between the United States, Israel and Iran, which has pushed energy and commodity prices higher and created inflationary pressure, forcing the European Central Bank, the US Federal Reserve and the Reserve Bank of Australia to raise policy interest rates. Total assets under management, or AUM, this year is expected to reach 16 billion baht, growing by about 6 billion baht, or 60%, compared with total AUM of about 10 billion baht last year, driven by expansion of the institutional and high-net-worth client base and by building on collaboration with parent company XSpring Capital, or XPG. At the same time, XSpring AM is preparing to launch the XSpring Australia Equity Fund, or X-AUSEQ, a feeder fund that invests directly in the master fund Candriam Equities L Australia Class I Cap, with a policy of investing no less than 80% of the fund's asset value. It is the first fund in Thailand with a policy of investing in companies listed in Australia, on the view that the Australian economy has high structural stability given a record of nearly 30 years of continuous growth without entering recession.

XPG's share price rose 3.64% to 0.57 baht, following management's confidence that the economy has passed its lowest point and that this year's revenue will grow in line with the target of 1.1 billion baht. Despite lower revenue from loans and dividends in the second quarter of 2026, other revenue streams continue to provide support.

XPG is sending positive signals for the third quarter of 2069, seeing a strong pipeline of deals in hand, with capital market conditions and trading volumes at satisfactory levels, supporting continued momentum across its group businesses. The company is also tightening credit controls, reducing loan-to-value ratios to 35-40% from 50%, and accelerating expansion in digital token and asset management businesses. Mr. Amorn Amornsomboon, Chief Business Development Officer of XSpring Capital Public Company Limited, or XPG, said during the earnings call that the operating outlook for the third quarter of 2069 is positive, supported by the volume of deals in hand as well as capital market conditions and trading volumes that remain at satisfactory levels. He believes this will help support business growth during the third quarter. The company is moving forward with a more cautious risk management strategy, especially in the lending business, by tightening borrower screening and reducing the loan-to-value ratio, or LTV, from 50% to 35-40% to increase the margin of safety and control portfolio quality. On the cost control side, the company is bringing in AI to improve work process efficiency. Meanwhile, its core group businesses still have momentum. XSpring Digital is moving ahead with expanding its ICO portal business after the success of the Acorus Investment Token, developing new projects across several industries including entertainment, sports, and businesses with steady cash flows. Several projects are currently under negotiation to create growth opportunities and extend the business further. On expense control, the company is focused on maintaining fixed costs, with a policy to freeze headcount or suspend increases in employee numbers to control long-term expense burdens, while having no current plans to reduce the existing workforce. XPG has begun applying AI technology in its work processes to increase efficiency and reduce workflow steps, which in the long term may help reduce reliance on human labor. For business units that are not yet profitable, the company will push them to grow and generate returns for the group. Looking at the overall picture over the next one to three years, the company expects the economy to recover gradually, but still needs to monitor purchasing power and high household debt levels, which may keep some investors in wait-and-see mode. However, the company has prepared products and services to be ready to become top of mind when the market becomes more favorable for investment. In the debt management business, the company continues to participate in debt auctions, currently focusing on smaller debt batches that banks put up for sale, while large debt batches have not yet come to market in significant volume.

XSpring Capital Public Company Limited, or XPG, reported first-half net profit for 2026 of 110 million baht, up 23% from the same period last year, with total revenue of 499 million baht, up 9%. In the second quarter of 2026, net profit was 59 million baht, up 124%, and total revenue was 260 million baht, up 32% from the same period last year. Growth was driven by wealth management fee income of 92 million baht, income from managing non-performing assets and selling properties held for sale of 70 million baht, and share of profit from investments of 48 million baht, while investment banking revenue was 6 million baht. The chief executive said the first half is likely the low point for the economy and expressed confidence that full-year revenue will reach the target of 1.1 billion baht.

K.C. Property Public Company Limited, or KC, has fully repaid its debt to XSpring Capital Public Company Limited, or XSpring, in two installments totaling 20 million baht, under the debt restructuring agreement dated 1 July 2026. The second installment of 10 million baht was paid on 22 July 2026, following the first installment of 10 million baht paid on 1 July 2026. After the payment, KC exercised its right to release the collateral and completed the mortgage redemption of 10 land plots in the Garden Home Min Buri project. The company reaffirms its commitment to fully comply with the agreement under the legal framework and good corporate governance.