MICRO: Oppday Q3/2025 บมจ. ไมโครลิสซิ่ง

Company Overview and Performance Presentation

Introduction to the Event

• The presentation welcomes investors to the Opportunity event hosted by the Stock Exchange, focusing on MRAING Public Company Limited's Q3 performance.

• The agenda includes five sections: company profile, performance overview, financial statement, business plan, and a Q&A session.

Company Profile

• MRAING primarily offers second-hand truck loans (73%), motorcycle hire purchase (25%), and personal loans under supervision (2%). Additionally, they provide non-life insurance and life insurance services.

• In the first half of the year, MRAING received a credit rating of "doub" with a negative outlook and repaid bonds worth 478 million baht while issuing new bonds totaling 123 million baht.

Business Segments

• The company's operations include various subsidiaries: Microing for truck loans, Micro Insureer for insurance services, Microfin for personal loans, and Microping for new motorcycle financing.

• Their portfolio consists mainly of trucks from brands like ENO (35.8%) and Isuzu (30.4%), with motorcycles predominantly from Yamaha and Honda at 26%. Most vehicles financed are six-wheeled trucks (27.6%).

Financial Metrics

• Current hire purchase portfolio stands at 2.685 billion baht with approximately 22,000 contracts serving around 21,000 customers; average age of financed trucks is about 15 years old. Interest rates range from 8% to 15% for trucks and 11% to 13% for motorcycles.

• The average contract value is approximately 72,000 baht for trucks and 63,000 baht for motorcycles; most debtors have an outstanding loan age of around four years.

Industry Overview

Market Trends

• In Q3 this year, there was a slight increase in market share for second-hand trucks compared to last year; however, overall market share decreased to about 1%. Motorcycle transfer values also saw stability at a market share of approximately 0.3%.

• Loan disbursements totaled approximately 184 million baht in Q3; motorcycle financing accounted for over one-third of total disbursements with significant reductions in new code issuance compared to last year (-34.5%).

Financial Statement Analysis

Asset Management

• Total assets decreased due to stricter lending measures leading to reduced loan volumes; liabilities also fell as repayments were made on matured debts resulting in a debt-to-equity ratio below one at approximately 0.81.

Customer Demographics

• The majority of clients belong to the transportation sector (58.5%), followed by construction (21.9%) and agriculture (15%). For motorcycle clients specifically: employees represent about 36%, farmers make up roughly 30%, while vendors account for around16%.

Quality Control Measures

• Non-performing loans (NPL) have shown a downward trend due to improved management practices regarding asset recovery efforts which focus on increasing collections effectively reducing NPL ratios over time.( t =454 s )

This structured summary provides an organized view into MRAING's current standing within its industry along with insights into its operational strategies as presented during the event.

Financial Overview and Business Strategy Insights

Employee Expenses and Financial Ratios

• Employee expenses account for 59% of the total costs, indicating a significant portion of operational expenditure.

• The Debt-to-Equity (DE) ratio has been adjusted to 0.81, suggesting improved liquidity for potential business expansion in the upcoming year.

• The quality of debt repayment is strong, with 71.8% of customers paying on time.

Interest Rates and Income Management

• Interest rates have slightly decreased to 16.1%, while combined with free income, it stands at 19%.

• Free income has increased to 2.9%, reflecting better financial management despite a reduction in loans to 5.8%.

• Cost-to-income ratios have risen due to decreased revenue and increased expenses.

Credit Quality and Profit Margins

• Credit costs have dropped to 8% compared to last year's figure of 11.6%, attributed to ongoing asset management since early this year.

• Net profit margin has improved to 23.7 million THB, marking an increase of 5.2%, which positively impacts Return on Assets (ROA) and Return on Equity (ROE).

Business Plan Execution

• The company successfully maintained liquidity levels necessary for repaying maturing bonds totaling approximately 1,059 million THB this year.

• Stricter credit issuance policies have led to higher-quality debtors being acquired.

Future Projections and Strategies

• Plans for the next fiscal year include addressing excess liquidity while maintaining strict credit controls amidst economic uncertainties.

• The company has managed substantial bond repayments amounting close to 3 billion THB during challenging economic conditions.

Loan Portfolio Management

• Current loan amounts are significantly reduced; however, cash reserves remain adequate for future lending activities projected for the next two years.

• Despite a decrease in loan portfolio size impacting revenues negatively, there is an emphasis on improving credit quality.

Outlook for Lending Activities

• There is cautious optimism regarding new lending as the company aims for a target of approximately 1,200 million THB across various loan types in the coming year.

• While focusing on expanding lending operations, stringent credit assessments will continue as part of risk management strategies.

This structured overview encapsulates key insights from the transcript while providing timestamps that facilitate easy reference back to specific discussions within the video content.

Financial Insights and Strategies for Future Growth

Current Financial Performance

• The company has seen a significant profit compared to previous losses, despite facing challenges with credit costs and declining collateral values.

• Issues related to high debt reserves due to deteriorating loan quality have been largely resolved, allowing for a focus on new lending opportunities.

• There is an emphasis on increasing loan disbursement next year while maintaining strict screening processes, albeit less stringent than in the past two years.

Risk Management and Loan Strategy

• The risk of default is being managed by adjusting loan-to-value (LTV) ratios and considering other financial metrics to support lending decisions.

• The goal is to maintain non-performing loan (NPL) ratios around 4%, acknowledging that the customer base consists mainly of underbanked individuals who may not meet traditional banking standards.

Asset Management

• Efforts are underway to manage repossessed vehicles effectively, with a strategy focused on selling off excess inventory due to concerns over falling vehicle prices.

• Currently, there are about 40-50 repossessed vehicles left in stock, significantly reduced from peak levels where monthly repossessions reached 100.

Market Conditions and Pricing Stability

• Recent stabilization in collateral prices has improved confidence in future lending practices, contrasting with prior periods of abnormal price declines.

• The company aims to enhance revenue streams while controlling credit costs through diversification into insurance products tailored for transportation businesses.

Strategic Adjustments for Future Operations

• A shift from aggressive cost-cutting measures towards optimizing operational processes is being implemented as current costs are already relatively low.

• Plans include expanding product offerings that support existing clients while attracting new ones by managing risks effectively.

Projections and Economic Considerations

• While aiming for a target of 1.2 billion in loans next year, actual disbursements will depend on overall economic conditions rather than strictly meeting this goal.

• Continuous monitoring of economic fluctuations will guide adjustments in lending strategies and cost management efforts moving forward.

Funding Strategies

• Minimal additional funding will be required for projected growth; however, exploring both debt and equity options remains a priority for business expansion at lower costs.

• Managing interest expenses effectively is crucial as they represent a significant portion of operational costs; current rates are favorable at approximately 0.66%.

This structured overview captures key insights from the transcript regarding financial performance, risk management strategies, asset handling, market conditions, strategic adjustments for future operations, projections based on economic factors, and funding strategies.

Economic Challenges and Market Strategies

Overview of Economic Conditions

• The speaker discusses the ongoing efforts to assist customers facing economic challenges, highlighting that while some are still doing well, others are beginning to struggle due to adverse economic conditions.

• Plans for the upcoming year are tentative due to high volatility in the market, indicating a need for frequent adjustments and communication with investors.

Construction Sector Insights

• A question is raised about the expected recovery of construction trucks in 2026, with an emphasis on market share expansion strategies within this sector.

• The construction industry is anticipated to face significant difficulties next year; however, there remains potential in certain segments that continue to perform adequately.

Government Projects Impacting Construction

• Several government projects are highlighted as opportunities for growth within the construction sector, including infrastructure developments like railways and motorways.

• Specific projects under consideration include expansions of major highways and new bidding opportunities that could benefit local economies.

Transportation and Export Challenges

• The transportation sector has seen a decline recently due to tax issues affecting exports; however, there is cautious optimism regarding potential increases in agricultural exports through negotiations with the U.S.

• Emphasis is placed on maintaining liquidity while cautiously expanding operations amidst challenging economic conditions.

Market Share Expansion Strategies

• Plans for increasing market share in truck sales focus on careful credit management across all companies involved in financing vehicles.

• Current trends show a decrease in aggressive lending practices among competitors, which may create opportunities for strategic growth despite concerns over market stability.

Confidence in Financial Management

• The company expresses confidence in its ability to manage debt and maintain liquidity without excessive borrowing, positioning itself favorably against competitors who may be struggling more significantly.

Motorcycle Segment Opportunities

• There is potential for growth within the motorcycle segment as previous management had handled larger portfolios effectively; current limitations stem from liquidity constraints rather than demand.

Strategic Partnerships and Inventory Management

• Discussions around inventory management highlight a "just-in-time" production approach where dealers must commit volumes early based on anticipated sales.

Future Growth Potential

• As liquidity improves, there will be greater capacity for expansion into larger retail partnerships previously avoided due to cash flow concerns.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.

Microboker Business Model and Future Plans

Overview of Microboker's Business Model

• The discussion begins with an inquiry into the business model of Microboker, highlighting its origins and foundational goals to support its parent company.

• Microboker aims to retain commission fees that would typically go to brokers, leveraging their existing sales capabilities in insurance and loans.

• A significant drop in loan issuance has impacted revenue, particularly from insurance premiums tied to these loans.

Changes in Strategy

• Due to reduced loan issuance, Microboker is shifting focus away from selling small personal insurance products towards larger platforms and systems requiring substantial investment.

• The strategy involves optimizing costs while expanding services for existing clients rather than solely targeting new customers.

Target Market Adjustments

• The company plans to engage not only current clients but also other businesses by offering insurance solutions tailored for various operators, especially in the used vehicle sector.

• Emphasis is placed on managing risk and providing comprehensive support for both large fleet operators and smaller businesses with fewer vehicles.

Product Expansion Opportunities

• Beyond vehicle insurance, there are opportunities to expand into other product lines based on customer requirements, indicating a flexible approach to service offerings.

• Understanding client needs allows Microboker to act as a consultant in risk management across different sectors.

Future Growth Projections

• When asked about future goals over the next 3–5 years, the speaker acknowledges uncertainty due to economic conditions but emphasizes the importance of planning despite challenges.

• While aiming for growth, they recognize that it may not mirror past rapid expansions; instead, they will focus on sustainable development and maintaining strong relationships with quality clients.

Revenue Diversification Strategies

• The company intends to explore additional revenue streams through interest income and fees while being cautious about investments during uncertain economic times.

• They plan gradual growth strategies rather than aggressive expansion due to current market risks but remain committed to developing new products based on successful pilot projects.

This structured summary captures key insights from the transcript regarding Microboker's business model evolution, strategic shifts in response to market changes, target market adjustments, product expansion opportunities, future growth projections, and diversification strategies.

Investor Update and Project Overview

Current Status of Projects

• Investors are being kept informed periodically about the status of various projects.

• There are multiple ongoing projects (referred to as "Pop projects") that require careful management before further updates can be provided.

• The team is focused on ensuring that all aspects of these projects are in order before making any announcements or clarifications to investors.

• Once specific areas are confirmed as satisfactory, detailed explanations will be shared with investors during regular reporting sessions.

• The session concludes with gratitude expressed towards the investors for their time and participation.