TQM Alpha (TQM) Q2 2025 earnings summary

Executive summary

• Maintained high renewal rates for core products despite challenging economic conditions, with stable total revenue up 0.4% YoY in 1H25, driven by renewals and new market penetration.

• Strong customer interest in car and home insurance, with home insurance demand rising after a recent earthquake.

• Easy Lending expanded in low-risk segments, with cautious credit extension for sustainable growth.

• New M&A activity aimed at driving expansion and profitability.

• Total assets as of 30 June 2025 reached 5,672.7 million Baht, with equity attributable to owners at 2,849.8 million Baht and total equity at 3,397.4 million Baht.

Financial highlights

• 1H25 revenue rose 0.4% YoY to 2,076.9 million Baht, but 2Q25 revenue declined 1.7% YoY and 13.7% QoQ.

• 1H25 gross profit was 994 MB with a gross profit margin of 49%.

• 1H25 net profit attributable to owners was 414 MB, down 7% YoY, with a net profit margin of 19%.

• Net profit for the six-month period was 392.6 million Baht, compared to 421.7 million Baht in the prior year.

• 2Q25 net profit dropped 16.3% YoY and 28.0% QoQ to 196 MB, with a net profit margin of 17.1%.

• Service costs increased 5.3% YoY in 2Q25, with high fixed expenses limiting cost flexibility.

• Administrative expenses rose 3.0% YoY in 2Q25, reflecting higher marketing investment.

• Administrative expenses totaled 503.8 million Baht for the period.

Outlook and guidance

• Targets THB 50,000 million in premiums by FY2027, with expected revenue growth of 5-10% annually from 2025-2027.

• Focus on sustainable growth, customer happiness, technology transformation, and M&A.

• Dividend payments and treasury share purchases were executed during the period, indicating ongoing capital returns to shareholders.