KCC's Q2 68 profit surges 332%, investing in NPLs to add to its portfolio

KCC reported strong Q2 68 performance, with a profit of 98.6 million baht, a 332% increase. This growth is attributed to the company's previous investments, including the acquisition of an additional 187 million baht in non-performing loans (NPLs) for its portfolio, while cash received from debtors increased to 400 million baht.

14 August 2568 Mr. Thawee Kullertprasert Chief Executive Officer Night Club Capital Holding Public Company Limited (KCC) Which is a holding company that invests in the non-performing asset management business, revealed the group's operating results for the second quarter of 2 as follows:

The Group reported a net profit of 98.6 million baht, a 332% increase compared to the same period last year, which saw a net profit of 22.8 million baht. This boosted the Group's total net profit for the first half of 2568 to 112.4 million baht, a 187% increase compared to the same period last year, which saw a net profit of 39.2 million baht.

In the second quarter of 2, the company reported total operating revenue of 2568 million baht, a 171.1% increase compared to the same period last year, which saw revenue of 145 million baht. For the first six months, the company reported total revenue of 69.7 million baht, a 6% increase compared to the same period last year, which saw revenue of 231.1 million baht.

"The increase in total revenue this period is a result of the company's actual operations, not any special items. It is a direct result of the company's efficiency in managing its previously acquired NPL portfolio. Typically, during the initial stages of NPL acquisition, revenue is not immediately generated due to the time required for analysis, negotiation, debt restructuring, and legal proceedings. Once the portfolio reaches a suitable stage, management returns will begin to be reflected steadily, as was the case this quarter, reflecting the company's ability to manage the debt portfolio, which has begun to generate tangible returns following the acquisition and management period," said Mr. Thawee.

In addition, in the first half of 2568, the Company invested in an additional 187 million baht in its NPL portfolio. This portfolio expansion is in line with the Company's long-term strategy to increase its asset base, enhance future cash flow generation and appropriate returns for shareholders and investors, and support long-term and sustainable growth. As of the end of June 2568, the Company's total assets rose to 2,586.4 million baht, a 4% increase from 2,496 million baht at the end of the previous year. Shareholders' equity rose to 1,303 million baht, up from 1,208 million baht at the end of 2567. This increase is attributed to increased retained earnings, a direct result of the high-quality increase in net profit, in line with the Company's growth strategy.

The Company has certain debentures maturing by October 2568. The Company has already planned and prepared funding for these debentures to ensure that they can be repaid on time without impacting the Company's liquidity and operations. For the remaining debentures, the Company has prudently managed its financial risks through monitoring of money market conditions, cash flow planning, and diversification of funding sources to maintain appropriate liquidity and support future debt repayments.

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