Trinity Securities has upgraded its recommendation on SCB X Public Company Limited, or SCB, from "Hold" to "Buy on Weakness" while maintaining its 2027 target price of 150 baht. It expects third-quarter 2026 net profit of 11.301 billion baht, up 2% from the previous quarter but down 6% from a year earlier. The main reason for the year-on-year earnings weakness is a lower net interest margin following cuts to the policy interest rate, while the quarter-on-quarter trend is supported by lower loan-loss provisioning expenses. Trinity expects net interest income in the third quarter of 2026 to fall 1% quarter on quarter, with net interest margin steady at 3.27% from 3.28% in the previous quarter. Non-interest income is expected to be flat quarter on quarter at 13.983 billion baht. Provisioning expenses are expected to fall about 6% quarter on quarter to 9.035 billion baht, bringing credit cost down to 150 basis points, back within the group's target range of 135 to 155 basis points. For its full-year forecasts, Trinity maintained its 2026 net profit at 42.568 billion baht, down 10% year on year, and expects 2026 net interest income of 116.352 billion baht, down from 119.117 billion baht in 2025, while non-interest income is seen at 44.042 billion baht and pre-provision profit at 90.128 billion baht. It forecasts a 2026 net interest margin of 3.50% and a return on average equity of 8.4%. Trinity said SCB's share price has weakened to near the 150 baht target price, so it is starting to see upside from a dividend yield expected at around 7% per year. It cited the main risks as an economic slowdown and deteriorating debt quality. The closing price in the report was 153 baht.
SCB X Public Company LimitedTrinity upgraded SCB to 'Buy on Weakness' with a 150 baht target, citing upside from an expected ~7% dividend yield.
