Chailease Holding Co (中租控股), the nation’s top leasing services provider, is upbeat about business prospects in Taiwan this quarter, but has trimmed growth targets for operations in China on a delay in demand, company spokesman Kevin Liao (廖英智) said yesterday.
“We have a more optimistic view about growth outlook with portfolio growth likely to reach 25 percent in Taiwan and Thailand this year, even though it may slow to 15 percent in China” from the previous forecast of 20 percent, Liao told an online conference.
However, he is confident about China business next year forecasting 25 percent growth, higher than a previous 20 percent projection.
In the first nine months, Chailease reported NT$1.71 billion (US$57.8 million) profit from China, which accounted for 36 percent of the company’s total profit and rose 45 percent from the same period last year.
Taiwan contributed 52 percent, or NT$2.42 billion in net profit, up 28 percent from the year-ago level, while Thailand accounted for another 10 percent, the equivalent of NT$470 million in profit, the company said.
Liao said loan demand is high this quarter and may peak toward the Lunar New Year, before falling in late January.
The company does not expect asset quality to deteriorate in the coming months, after the delinquent amount rose to 3.6 percent at NT$5.6 billion as of Sept. 30, from 3.5 percent at NT$5.36 billion as of June 30, Liao said.
Provision costs totaled NT$4.42 billion as of the end of September, translating into a coverage ratio of 2.8 percent, compared with 2.9 percent three months earlier, according to company figures.