Reading between the lines in the 2Q26 Management Discussion and Analysis of MBK Public Company Limited (MBK): Revenue down 2.7%. Net profit up 13.6%. And a motorcycle loan book that grew on new bookings in 1Q26 and stopped taking new loans in 2Q26.
The numbers
Real estate leads a softer top line
MBK runs shopping centers, hotels, golf courses, housing projects, rice sales, hire-purchase and secured lending, and car auctions, and holds associates in finance and shopping centers. In 2Q26, revenue fell 2.7% YoY to Bt2,886m. Real estate fell 41.3%, the largest decline in value, with smaller declines elsewhere, led by the hotel and tourism sector. Golf rose 15.9%, including Bt21m from the newly consolidated Lam Luk Ka golf course.
Operating profit slips, associates rise
Gross margin was 48.7% in 2Q26, against 49.2% in 2Q25. MD&A operating profit fell 6.0% YoY to Bt551m, as lower profits from the hotel and tourism, shopping center, and golf segments outweighed a 24.1% rise in finance. Share of profit from associates and joint ventures rose 26.0% to Bt723m. Net profit rose 13.6% to Bt1,352m, a net margin of 46.8%.
An April lease payment cuts liabilities
Total liabilities fell 6.1% to Bt36,207m from end-FY25. Finance lease liabilities, mainly for the Pathumwan and Paradise Park shopping center sites, decreased Bt1,035m after a Bt1,319m payment fell due in April 2026.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a couple of things stand out.
Motorcycle hire-purchase grew in 1Q26; new lending moved to a joint venture in 2Q26
The 1Q26 MD&A reported the motorcycle hire-purchase portfolio up Bt125m, primarily driven by new loan bookings “in line with the increasing market demand.” It also noted a Bt45m capital injection into an unnamed new associate in the same business.
The 2Q26 MD&A identifies the associate as TTB Leasing, a joint venture with a subsidiary of TMB Thanachart Bank, registered on 11 February 2026. The group holds 30%. From 1 May 2026, new motorcycle loans are booked by TTB Leasing, and the group’s own portfolio, down Bt441m from end-FY25, is expected to wind down over three to five years.
Shopping center occupancy and rents up; revenue down
Both filings state that shopping center occupancy and average rental rates continued to rise, and that the situation in the Middle East has not yet affected leasing. In 1Q26, the MD&A cited a decline of approximately 3% in visitor numbers in March against February. In 2Q26, it cites a decline of approximately 5% against 1Q26 without naming the measure.
Segment revenue was Bt981m in 1Q26 and Bt984m in 2Q26. YoY, it fell 1.8%, and segment operating profit fell 10.7% to Bt285m. The filing does not identify which revenue line declined.