AH stocks, auto parts manufacturers in Thailand This morning, the price fell more than 20% to 27.75 baht per share, the lowest in two months after the outside media reported that Isuzu, a Japanese car manufacturer, Prepare to move the production base in Thailand to Indonesia
AH’s new high profit of 1,824 million baht, jumping 78%, receiving demand for auto parts, paying a dividend of 0.96 baht
Isuzu accelerates development of electric pickup truck, the ISUZU D-Max EV, confirmed to be produced in Thailand
On June 8, 2023 at 11:00 am, AH AAPICO Hitech Public Company Limited stocks fell more than 20% to 32 baht per share, making the lowest price in the morning at 27.75 baht, Trading value more than 1,200 million baht .
by such an event It happened after foreign news agencies reported that Isuzu Motors, a Japanese car manufacturer, There is a plan to move the production base from Thailand. to Indonesia which is expected to start operating early next year
Yesterday (June 7, 2023), the Minister of Industry from Indonesia met with Isuzu executives in Tokyo, Japan along with a statement stating that “Thanks to Isuzu’s decision, Indonesia will provide incentives. and support the process of relocating the production center this time.”
However, Isuzu Motors (Thailand) has not confirmed the current news in any way.
Currently, Indonesia There are car production centers for many Japanese car manufacturers such as Honda, Mitsubishi, Suzuki and Suzuki, as well as setting a goal to be a center for the production of electric vehicle batteries. It will take advantage of abundant resources in the country, such as nickel, which is the raw material for lithium-ion batteries.
“AH” produces auto parts for many famous brands.
As for AAPICO Hitech Public Company Limited or AH, it is a major manufacturer of automotive parts and equipment in Thailand Currently, it has 3 main businesses: the business of manufacturing and distributing automotive parts with a share of 73%, and car dealer and service center with 27% share % Including 1% IoT technology service business
Most of AH’s customers are famous car brands such as Isuzu, Nissan, Mazda, BMW, Toyota, Ford, Mitsubishi, Honda. , Suzuki and Great Wall Motors, etc.
While AH’s 2022 financial statements had a net profit of 1,823 million baht and a total income of 28,348 million baht, while the latest quarter of 2023 had a net profit of 597 million baht, an increase of 47.1% from the same period last year. and had a total income of 8,197 million baht, an increase of 20.3%% from the same period last year.
Assess the revenue impact of AH if Isuzu actually shifts its production base.
Recently, Bualuang Securities has seen that Isuzu will not actually move its production base. Due to the high switching cost and in the past, there has been no signal from Isuzu, and if there is a real base movement, the company should have been informed earlier.
In addition, the relocation of the production base according to the time frame according to the news. That is unlikely, as it will take time to find a new supply chain, which according to the news is unlikely to catch up next year. Isuzu in Thailand is now still taking orders throughout the year as AH and it is expected that the parts already produced for the same model will continue to be received.
But worst case Should one of the two production plants actually move to Indonesia Expect AH’s revenue to drop 10-15% from now that OEMs account for 73% of the company’s total revenue and Isuzu accounted for 36% of OEM revenue for Q1. Year 66
