TQM Alpha (TQM) Q3 2024 earnings summary

Executive summary

• 3Q24 service revenue grew 10.8% year-over-year, with 9M24 up 8.4%, driven by organic growth and expansion in motor, health, accident, and life insurance.

• Targeting 2,000 million baht in life insurance premiums by end of 2025, leveraging a 3 million customer base.

• Enhanced returns from subsidiaries, with Easy Lending expanding in low-risk segments and new M&A expected to support growth.

• Net cash from operating activities decreased to negative 81.9 million Baht for 9M24, compared to positive 669.8 million Baht last year.

• Profit for the period rose to 672.0 million Baht from 612.9 million Baht year-over-year.

Financial highlights

• 3Q24 total revenue rose 6.7% year-over-year to 1,089 million THB; commission revenue up 7%.

• Gross profit increased 8.1% year-over-year to 502 million THB, with gross margin above 52%.

• Net profit attributable to owners grew 2.6% year-over-year and 8.2% sequentially, with a 22% net profit margin.

• Cash and cash equivalents at 30 September 2024 were 729.1 million Baht, down from 887.1 million Baht at the start of the year.

• Service costs rose 13.9% year-over-year, while administrative expenses fell 6.2% year-over-year due to effective cost control.

Outlook and guidance

• Expecting a revenue growth rate of 5–10% for 2024–2025, with a premium target of 50,000 million THB by FY2027.

• Anticipates a peak in 4Q24 from motor, health, accident, and life insurance segments.

• Strategic focus on technology transformation, M&A, and expanding product offerings to drive sustainable growth.