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Introduction & Market Context
TQM Corporation PCL, a leading insurance broker in Thailand, reported its first quarter 2025 results on May 22, showing modest revenue growth coupled with strong profitability. The company maintained its market leadership in motor insurance while expanding its financial solutions segment and outlining ambitious growth targets through 2027.
The company’s stock (TQM) is currently trading at 15.60 baht, within its 52-week range of 12.20 to 33.25 baht, as it continues to execute on its diversification strategy across insurance, financial solutions, and technology platforms.
Quarterly Performance Highlights
TQM reported Q1 2025 revenue of 1,115 million baht, representing growth of 2.4% year-over-year and 17.6% quarter-over-quarter. This growth was primarily driven by higher insurance sales from both renewals and new customer acquisitions.
As shown in the following chart of quarterly revenue growth:
Gross profit increased by 1.3% year-over-year to 557 million baht, with a gross profit margin of 51%. This represents a slight compression in margins compared to the previous year but demonstrates the company’s ability to maintain strong profitability despite competitive pressures.
Net profit attributable to owners of the parent rose to 228 million baht, up 1.2% year-over-year and 29.0% quarter-over-quarter, with a net profit margin of 20.5%. The company’s overall net profit reached 243 million baht, showing a 0.9% year-over-year increase and a 27.7% quarter-over-quarter improvement.
The following chart illustrates TQM’s net profit performance:
Detailed Financial Analysis
TQM’s revenue model continues to be dominated by insurance commissions, which accounted for 61% of total revenue in Q1 2025. Non-life insurance remains the company’s primary business segment, representing 90% of revenue, while life insurance accounts for the remaining 10%.
The revenue breakdown by type is illustrated in the following chart:
A more detailed view of the revenue composition shows the relative stability of the revenue mix over time, with commission revenue consistently serving as the primary contributor:
Service costs increased by 4.5% year-over-year to 540 million baht, slightly outpacing revenue growth. The service-cost-to-income ratio rose marginally from 47.4% in Q1 2024 to 48.4% in Q1 2025, indicating some pressure on operational efficiency.
In contrast, administrative expenses showed a slight decline of 0.3% year-over-year, reflecting the company’s focus on prudent expense management. The admin-expenses-to-income ratio improved by 0.6 percentage points compared to the previous year.
TQM’s key financial ratios for Q1 2025 show a mixed picture, with improved leverage but slightly lower returns:
The company’s financial solutions segment has been a standout performer, with the outstanding loan portfolio growing by 48% year-over-year to 1,127 million baht. Insurance premium loans dominate this portfolio at 85%, with personal loans at 13% and car title loans comprising just 1%, reflecting the company’s strategy to focus on lower-risk lending segments.
As illustrated in the following chart showing the growth of TQM’s loan portfolio:
Strategic Initiatives
TQM outlined several strategic initiatives aimed at creating group synergy across its three main pillars: Insurance Solutions, Financial Solutions, and Technology Platform. The company is focusing on outpacing market growth in its core insurance business while exploring opportunities in non-motor and life insurance segments.
In the life insurance segment, TQM is unlocking value through its extensive customer base and digital infrastructure, collaborating with strategic insurers to offer innovative products, and upskilling its sales force with specialized training programs. The company has secured a top-tier strategic partner and obtained a Life Digital Broker License to support these initiatives.
The company also announced plans for a potential IPO of True Life to realize value from this growing business segment, which currently shows a net profit margin exceeding 40%.
Forward-Looking Statements
TQM has set an ambitious premium target of 50,000 million baht for FY2027, projecting average annual revenue growth of approximately 5-10% from 2025 to 2027. This growth strategy is built around seven key areas: finding potential partners, turning competitors into partners, technology transformation, artificial intelligence and data-driven approaches, human and culture development, cross-selling multiple products to existing customers, and strategic M&A activities.
The company’s dividend policy remains shareholder-friendly, with the Annual General Meeting approving a year-end dividend payment of 0.50 baht per share, bringing the total dividend for FY2024 to 0.95 baht per share.
As TQM continues to execute its diversification strategy and expand its financial solutions segment, the company appears well-positioned to maintain its market leadership in insurance brokerage while developing new growth avenues through technology and strategic partnerships.
Full presentation:
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