TQM Alpha (TQM) Q4 2024 earnings summary

Executive summary

• FY24 service revenue grew 6.0% year-over-year, driven by organic expansion despite a challenging car market.

• Maintained market leadership in non-life insurance, with motor insurance as a key growth driver.

• Diversification into non-motor segments (life, home, health, corporate) and expansion of Easy Lending supported sustainable growth.

• Strategic investments increased costs and expenses to support future market expansion.

• New M&A activities targeted to drive further expansion and profitability.

Financial highlights

• FY2024 total income reached THB 3,991 million, up 6% year-over-year, mainly from commission revenue.

• Gross profit grew 1.4% YoY to THB 1,978 million, with a gross profit margin of 51%.

• FY2024 net profit attributable to owners was THB 811 million, with a net profit margin of 20.3%.

• 4Q24 net profit declined 18.7% YoY and 16.6% QoQ.

• Service costs and administrative expenses increased 13.9% and 13.3% YoY, respectively, reflecting business expansion.

Outlook and guidance

• Targets THB 50,000 million in premiums by FY2027.

• Expects average revenue growth of approximately 5-10% in 2025.

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