IFS Capital (Thailand) Q3 2025 Financial Results: Detailed Investor Report
IFS Capital (Thailand) Q3 2025 Results: Profit Down Amid Higher Credit Losses, Cash Position Strong
Key Financial Highlights for Investors
- Net profit for Q3 2025: THB 45.4 million, up 34% YoY
- Net profit for 9M 2025: THB 68.3 million, down 29% YoY
- Earnings per share (EPS): Q3 2025: THB 0.09, 9M 2025: THB 0.14
- Significant rise in credit loss provisions under TFRS 9: THB 84.0 million (9M 2025) vs THB 22.6 million (9M 2024)
- Strong liquidity: Cash and cash equivalents at THB 685.4 million, up 58% from end-2024
- Dividend paid: THB 73.0 million (THB 0.148 per share) in 2025
- Share of loss from new joint venture (Beyond Leasing Co., Ltd.): THB 988,065 for 9M 2025
- Total assets: THB 4.26 billion; Equity: THB 1.82 billion
- Unqualified review opinion: By Deloitte Touche Tohmatsu Jaiyos Audit
Detailed Financial Performance
Quarterly and Year-to-Date Results
|
Q3 2025 |
Q3 2024 |
9M 2025 |
9M 2024 |
| Net Profit (THB ‘000) |
45,438 |
33,805 |
68,258 |
96,370 |
| EPS (Baht) |
0.09 |
0.07 |
0.14 |
0.20 |
| Total Revenue (THB ‘000) |
119,434 |
111,489 |
349,404 |
326,292 |
| Impairment (TFRS 9) (THB ‘000) |
(1,022) |
5,716 |
84,017 |
22,624 |
| Share of Loss JV (THB ‘000) |
392 |
– |
988 |
– |
Business Segment Insights
- Factoring business: Main revenue driver, with 9M 2025 income of THB 308.3 million (vs. THB 281.3 million in 9M 2024). Net profit for segment: THB 67.4 million (vs. THB 96.7 million in 9M 2024).
- Hire purchase and finance lease: 9M 2025 income of THB 7.7 million, net profit THB 0.9 million (vs. net loss of THB 0.3 million in 9M 2024).
- Other: Minor impact, mainly corporate and unallocated income/expenses.
Operational and Financial Position
- Total Assets: THB 4.26 billion as of Sep 30, 2025 (up 4% from Dec 31, 2024).
- Cash & Cash Equivalents: THB 685.4 million (up THB 251 million YTD), indicating strong liquidity.
- Factoring Receivables: Net THB 3.18 billion (after THB 206.9 million credit loss allowance, up 64% YTD).
- Short-Term Borrowings: THB 2.15 billion, up from THB 1.93 billion in Dec 2024; interest rates between 2.15% and 2.59%.
- Long-Term Borrowings: THB 144 million, with THB 64 million due within one year; interest at 3.69% (floating).
- Debt/Equity ratio: Company is required to maintain covenant ratios as per loan agreements (not breached in the period).
- Credit Facilities: THB 5.29 billion total, with THB 2.68 billion unused as of Sep 30, 2025.
Key Risks and Noteworthy Developments for Shareholders
- Significant increase in credit loss provisions: Indicates a deterioration in asset quality, especially in factoring receivables. Non-performing factoring receivables (Stage 3) now account for THB 204.9 million of the allowance (up from THB 124.1 million at end-2024), and the overall expected credit loss rate for defaulted factoring receivables is over 94%.
- New Joint Venture Performance: The Company invested THB 49 million (49% stake) in Beyond Leasing Co., Ltd. in mid-2024, which generated a loss share of THB 988,065 for the 9M 2025 period. This JV is in its ramp-up phase and is yet to contribute profit.
- Dividend Payments: A dividend of THB 0.148 per share (total: THB 73 million) was paid in May 2025. This payout is slightly lower than the 2024 dividend (THB 0.168 per share, total: THB 82.9 million), reflecting the lower profit.
- Operating Cash Flow: The Company generated THB 180.9 million in operating cash flow during 9M 2025, down sharply from THB 377.9 million in 9M 2024, mainly due to higher impairment losses and profit decline.
- Management Remuneration: Management benefit expenses dropped notably (THB 26.3 million for 9M 2025 vs. THB 36.5 million for 9M 2024), indicating cost control efforts.
Related Party Transactions and Shareholding Structure
- Major Shareholders: IFS Capital Limited (Singapore) with 36.49%, and IFS Capital Holdings (Thailand) Limited with 36.64%. The ultimate parent is Philip Asset Pte. Ltd. (Singapore).
- Related Party Transactions: Service agreements with major shareholder IFS Capital Limited for IT and other services; annual fee as per agreement.
- Dividend Distributions: Major shareholders received THB 53.4 million in dividends in 2025.
Regulatory and Accounting Updates
- Accounting Policy Updates: Adoption of revised Thai Financial Reporting Standards (TFRS), including stricter requirements for credit loss and disclosures. No material impact on financials disclosed.
- Unqualified Review: Interim accounts reviewed by Deloitte, with no audit exceptions.
Management Outlook and Segment Information
- The company’s main business remains factoring, with steady revenue but increased risk and credit costs.
- Hire purchase and finance lease segments remain small, with limited impact on overall profits.
- No revenue concentration (no single customer >10% revenue).
Potential Share Price Sensitivities
- Rising credit loss provisions and higher non-performing assets could pressure future profits and valuation if the trend persists.
- Strong cash position and available credit lines provide a buffer, reducing liquidity risk.
- Dividend payout remains solid but lower than last year, which may temper investor expectations.
- Early-stage loss in JV is not material for now but should be monitored for future contributions or drag on group profits.
Conclusion
IFS Capital (Thailand) Public Company Limited reported a strong Q3 profit but a significantly lower year-to-date profit due to a substantial increase in credit loss provisions, reflecting deteriorating asset quality in its core factoring business. The company remains liquid, with robust cash reserves and access to funding. Shareholders should monitor the rising impairment trend and the performance of the new joint venture. The reduced dividend payout, though still healthy, mirrors the lower profit. These factors could influence the company’s share price outlook in the near term.
Disclaimer: This article is a summary based on IFS Capital (Thailand) Public Company Limited’s reviewed Q3 2025 financial statements and related disclosures. It is for informational purposes only and does not constitute investment advice or a recommendation. Investors should review the full financial statements and consult professional advisors before making investment decisions. The author and publishers accept no liability for actions taken based on this information.
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