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Top picks: AEONTS, SINGER Neutral Approximately 18 million people would benefit from the tax refund policy for low incomers; B55.6bn/year will be injected into the system, benefiting leasing companies. We favor AEONTS and SINGER.



Leasing

- Tax refund for people with below B30,000/year income

The Fiscal Policy Office (FPO) has studied on tax refund for low incomers,

aiming to distribute income and support long-term sustainability for poor

people without populist policy. The FPO plans to propose the policy to the

NCPO and the new government as soon as possible. The tax refund depends

on tax rates determined by the Revenue Department. For employed people

aged 15-60 with less than B30,000/year (or B2,500/month) income, they

will be granted additional tax refund of 20% of their income. For employed

people aged 15-60 with over B30,000/year but less than B80,000/year

income, they will earn additional tax refund of 12% of their income that

exceeds B30,000. 18 million Thai people (27.5% of total Thai citizen) would

benefit from this policy; B55.6bn/year budget will be spent on it.

- TK, GL, AEONTS, SINGER to benefit most

The tax refund policy is expected to benefit retail leasing companies

(AEONTS and SINGER) and motorbike leasing companies (TK and GL) most;

the majority of their clients are low incomers. The policy would raise

consumer confidence and boost household spending, especially for AEONTS

(personal loan) and SINGER as most of their clients do not have reliable

financial documents. The policy is not likely to boost household spending

significantly in a short term because overall household debt has been very

high. However, the policy would sustainably increase household spending in

a long run; the tax would be refunded directly to the clients and lower risk

from uncertainty e.g. a decrease in income from OT or working hours.

- Top picks: AEONTS, SINGER

Leasing sector’s top picks are AEONTS(FV@B121) and SINGER(FV@B25) for

their strong, diversified revenue structure and good upsides.


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