Heng Leasing and Capital Public Company Limited as expertise in the business that understands customer needs, offering a variety of loan products and creating opportunities for customers in accessing sources of funding, prepares to raise funds in the SET to create sustainable growth

'Heng Leasing and Capital Public Company Limited' prepares to raise funds on the SET, expanding service capabilities and providing various loan products that meet the needs of customers in each locality under the concept 'anyone can borrow', reinforcing the strength of the company's management and employees with experience and understanding in customers. The company has joined a network of partners to create a competitive advantage. The business plan includes offering products that meet the needs of customers, increasing the number of branches, and developing an information technology system which would create opportunities for customers to access fair sources of funding. The company aims to increase the total loan portfolio value to THB 14,800 million by the year 2023. The SEC Office has counted Day 1 on the company's filing form.

Mrs. Sutharntip Phisitbuntoon, Chief Executive Officer of Heng Leasing and Capital Public Company Limited or HENG, a major loan service operator in the northern region under the brand 'Heng Leasing' reveals that the Company is ready to expand its lending business under the vision 'the most preferred financial service provider in each locality by offering a wide range of products, including secured and unsecured loans namely: (1) hire purchase; (2) personal loan under with motor vehicle registration as collateral; (3) mortgage loan; (4) personal loan that is not a loan with motor vehicle registration as collateral; and (5) nano financing. In addition, the company also provides non-life and life insurance brokerage services through a network of branches for 6 leading insurance companies, offering a wide range of products such as auto insurance, motorcycle insurance, accident insurance, and life insurance, etc.

The company's strength lies in its management team which comes from 4 major loan service providers in the northern region, namely Tawee Heng Group, Pattanasin Group, Mit Uaree Group, and Sinpranee Group who specialize in loan services for over 20 years and have a strong customer base in the northern region with a team of local employees that understand customers. The company can create a competitive advantage by offering products and services under the concept 'anyone can borrow' with the principles of understanding, fairness, transparency, and speed, taking into consideration the best interests of customers. This increases opportunities for to customers in accessing sources of funding that respond to their needs.

In addition, the company has a network of alliances with more than 5,100 used car operators and brokers who help present products and refer customers to branches in each area. Currently, the company has branches in 51 provinces in every region of the country. This is considered a competitive advantage for the company’s secured loan services. The company also offers non-life and life insurance brokerage services in order to respond to customers’ needs in a comprehensive manner.

Chief Executive Officer of HENG said that the company plans to strengthen its loan products through product diversification and increase access to sources of funding that are suitable for customer behavior in each locality by the expansion of branches to central, northeastern, and western regions, transforming from the former HENG that has a strong base in the northern region only. The company’s goal is to increase its branches to 830 branches by the year 2023 from 451 branches as of the end of Quarter 2/2021 and focuses on developing information technology infrastructure, software, and mobile applications. It also develops and improves the quality of personnel standards in order to enhance service capability and support growth in the total loan portfolio to THB 14.8 billion.

Dr. Theerawat Thawanratphokin, Assistant Managing Director of Accounting and Finance Department of Heng Leasing and Capital Public Company Limited said that during the year 2018-2020, the company has continuously expanded its loan portfolio from THB 7,349 million to THB 7,534 million, and THB 7,733 million respectively, representing an average growth rate (CAGR) of 2.6% per annum. The company’s interest income was THB 1,239 million, THB 1,557 million, and THB 1,450 million respectively. Over the past 3 years, most of the interest income came from secured loans. The key product which generated a significant proportion of total revenue was hire purchase, representing 64.0%, 76.7%, and 65.0% of the total revenue respectively. This reflected a strong network of partners, along with an intention to manage and control finance costs and administrative expenses. As a result, net profit in the year 2018-2020 was THB 151.8 million, THB 188.7 million, and THB 318.1 million, representing an average growth rate (CAGR) of 44.6% per annum.

In respect of the operating performance as of 30 June 2021, the company has a total loan portfolio of THB 7,802 million with an interest income of THB 686.1 million. Secured loans make up the highest proportion of the total loan portfolio, accounting for 81.4% of total revenue whereby hire purchase remains the main source of income, accounting for 52.9%. The company has set aside for management overlay to accommodate the expected credit risk arising from the Covid-19 situation. However, the company has managed its operating expenses to be suitable for the situation. As a result, net profit in this quarter is THB 109.1 million.

Mr. Pongsak Phrukpaisal, Managing Director of Kasikorn Securities Public Company Limited as financial advisor stated that Heng Leasing and Capital Public Company Limited or HENG has submitted a request for an offer for sale of securities and a registration statement (filing form) to the SEC Office for the initial public offering (IPO) of not more than 800,837,300 shares or not more than 21% of the total number of issued and paid-up ordinary shares and, after the offer and listing of the newly issued shares on the Stock Exchange of Thailand, the SEC Office has counted Day 1 on the filing form, HENG will use the proceeds from this fundraising to strengthen the business by expanding loan services and related businesses, increasing the number of branches, and additional investment in the development of information system. The remaining amount of proceeds shall be used as working capital and loan repayment to the financial institutions.

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