Thitikorn Public Company Limited (TK), the leading motorcycle hire-purchase service provider in Thailand, has reported on its regional expansion strategy in terms of both revenue and market presence by announcing the recent approval of licenses for its subsidiary in Cambodia, the Sousdey Finance Company, to open six additional branches.
All of the six new branches in Cambodia will immediately provide motorcycle financing services and this doubles Sousdey Finance’s network from six to 12 branches in order to take advantage of the growing motorcycle market in the neighboring country which has sales of over 500,000 units per year.
Managing Director of Thitikorn Public Company Limited (TK) Ms. Prathama Phornprapha said that TK’s strategic direction was to accelerate its regional expansion in ASEAN countries through subsidiary companies. Currently there are three subsidiaries in three countries, Sousdey Finance Company Limited in Cambodia, Sabaidee Leasing Company in Laos and Mingalaba Thitikorn Microfinance Company Limited in Myanmar.
“Our team is ready for the expansion and more than 50 people have been recruited and trained in advance. We are already providing motorcycle financing services to customers from our newly-opened branches which are in Kampong Thom, Kampot, Banteay Meanchey, Takeo, Kampong Chhnang and Pursat provinces and this is in addition to our existing branches in Phnom Penh, Battambang, Siem Reap, Kampong Cham, Svay Rieng and Kampong Speu. TK will continue its regional expansion strategy in terms of increasing both revenue and market presence,” Ms. Prathama added.
Director and Deputy Managing Director of Thitikorn Public Company Limited Mr. Prapol Phornprapha said that TK’s subsidiary, Sousdey Finance Company Limited in Cambodia, was achieving high growth and profitability.
“In 2019, the company’s growth in loans was 23.5% while the growth of income was 114.1% compared to 2018. As of the end of 2019 Cambodian operations represented 14.0% of the total motorcycle loan portfolio,” he explained.
“In 2020, the growth rate of loans in Cambodia is expected to be at least 15% in Cambodia. Cambodia’s population is still young where there is a much higher birth rate than in Thailand. Household debt in Cambodia is still very low and the average income is rising, which translates to high-quality customers,” the Deputy Managing Director added.
“Cambodia’s motorcycle market sales are more than 500,000 units per year and this is still growing since the country’s public transportation system is not yet developed. Motorcycles are the cheapest mode of transport and sales will continue to grow.”
“TK will continue to expand its operations in neighboring countries. We have already started our Microfinance operations in Myanmar and expect to open two more branches there soon as well as opening three more branches in Laos. By the end of 2020, we expect to have 21 branches in these three countries,” Mr. Prapol said.
About Thitikorn Public Company Limited
Thitikorn Public Company Limited (TK) is a leading motorcycle hire-purchase provider in Thailand. Currently, there are over 1,900 employees, with 75 service branches, along with three subsidiaries in Cambodia, Laos and Myanmar providing motorcycle hire-purchase services both domestically and regionally with approximately 300,000 active customers.
Thitikorn Public Company Limited (TK), the leading motorcycle hire-purchase service provider in Thailand, has reported on its regional expansion strategy in terms of both revenue and market presence by announcing the recent approval of licenses for its subsidiary in Cambodia, the Sousdey Finance Company, to open six additional branches.
All of the six new branches in Cambodia will immediately provide motorcycle financing services and this doubles Sousdey Finance's network from six to 12 branches in order to take advantage of the growing motorcycle market in the neighboring country which has sales of over 500,000 units per year.
Managing Director of Thitikorn Public Company Limited (TK) Ms. Prathama Phornprapha said that TK's strategic direction was to accelerate its regional expansion in ASEAN countries through subsidiary companies. Currently there are three subsidiaries in three countries, Sousdey Finance Company Limited in Cambodia, Sabaidee Leasing Company in Laos and Mingalaba Thitikorn Microfinance Company Limited in Myanmar.
"Our team is ready for the expansion and more than 50 people have been recruited and trained in advance. We are already providing motorcycle financing services to customers from our newly-opened branches which are in Kampong Thom, Kampot, Banteay Meanchey, Takeo, Kampong Chhnang and Pursat provinces and this is in addition to our existing branches in Phnom Penh, Battambang, Siem Reap, Kampong Cham, Svay Rieng and Kampong Speu. TK will continue its regional expansion strategy in terms of increasing both revenue and market presence," Ms. Prathama added.
Director and Deputy Managing Director of Thitikorn Public Company Limited Mr. Prapol Phornprapha said that TK's subsidiary, Sousdey Finance Company Limited in Cambodia, was achieving high growth and profitability.
"In 2019, the company's growth in loans was 23.5% while the growth of income was 114.1% compared to 2018. As of the end of 2019 Cambodian operations represented 14.0% of the total motorcycle loan portfolio," he explained.
"In 2020, the growth rate of loans in Cambodia is expected to be at least 15% in Cambodia. Cambodia's population is still young where there is a much higher birth rate than in Thailand. Household debt in Cambodia is still very low and the average income is rising, which translates to high-quality customers," the Deputy Managing Director added.
"Cambodia's motorcycle market sales are more than 500,000 units per year and this is still growing since the country's public transportation system is not yet developed. Motorcycles are the cheapest mode of transport and sales will continue to grow."
"TK will continue to expand its operations in neighboring countries. We have already started our Microfinance operations in Myanmar and expect to open two more branches there soon as well as opening three more branches in Laos. By the end of 2020, we expect to have 21 branches in these three countries," Mr. Prapol said.
About Thitikorn Public Company Limited
Thitikorn Public Company Limited (TK) is a leading motorcycle hire-purchase provider in Thailand. Currently, there are over 1,900 employees, with 75 service branches, along with three subsidiaries in Cambodia, Laos and Myanmar providing motorcycle hire-purchase services both domestically and regionally with approximately 300,000 active customers.
