In This Article:
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Chailease Holding Co Ltd (TPE:5871) achieved a 4% year-over-year growth in its consolidated credit portfolio, reaching $825 billion by the end of Q4 2024.
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The company reported a record high consolidated revenue of $102.3 billion for the year, marking a 5% increase compared to the previous year.
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ASEAN operations showed strong performance with a 6% year-over-year increase in credit portfolio, with Malaysia being a key growth driver.
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Taiwan's solar net assets grew by 9% year-over-year, maintaining Chailease's number one market share in the solar sector.
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The company expects improvement in funding costs as the interest rate hike cycle ends, which should enhance interest spreads moving forward.
Negative Points
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Chailease Holding Co Ltd (TPE:5871) experienced a 32% quarter-over-quarter decline in net profit for Q4 2024, primarily due to increased expected credit losses in China.
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The company's consolidated ROA decreased to 2.4% from 2.9% the previous year, reflecting a decline in net profit.
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China's delinquency ratio increased by 0.6% to 5.1% in Q4 2024, indicating ongoing challenges in the region.
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Taiwan's net profit decreased by 5% year-over-year, largely due to an increase in expected credit losses.
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The company's consolidated ROE fell to 15% for 2024, impacted by lower leverage and decreased profitability.
Q & A Highlights
Q: Can you provide the latest portfolio mix for your Taiwan loan book, particularly the breakdown in terms of SME leasing, consumer leasing, and USD book leasing? A: The SME customer-related financing business accounts for about 50% of the Taiwan book. Micro business financing is about 10%, and larger corporate clients, especially those related to overseas financing, make up about 20%. Consumer financing, particularly car financing, accounts for about 6-7% after the decline last year. (Respondent: Unidentified_4)
Q: Regarding the China operation, you mentioned allowing restructuring for borrowers. Can you elaborate on this arrangement and its impact on delinquency numbers? A: The restructuring aims to maintain a satisfactory level of loss given default due to prolonged legal processes in China. It involves renegotiating or restructuring delinquent cases to encourage SME clients to continue repayments. This does not change the recognition of delinquency but aims to enhance recovery efficiency. (Respondent: Unidentified_4)