#ThanHoon – Krungsri Securities holds automotive groups From the news reports that came out Indonesia’s industry minister told the press that Isuzu Motors plans to move one of its factories from Thailand. This is the market where the company has the highest sales of pick-up trucks. to Indonesia and can start production next year as soon as possible, however, Isuzu Motors has denied He said the news yesterday afternoon. Finally, a senior official from Indonesia’s Ministry of Industry has once again confirmed that UD Truck’s base will be moved to Indonesia.
The research department sees it as a low possibility ***
From the perspective of the research department, it is believed that Isuzu does not intend to move the pickup truck production base. to another country Since Thailand is one of Isuzu’s biggest production centers, UD Trucks are big trucks. with low production compared to peak Almost two million cars are produced in Thailand each year. In addition, automotive companies in Thailand do not gain from UD Truck, believe that there is a low probability that Isuzu will move the plant soon.
Sales to Isuzu account for around 30% and 10% of AH and SAT’s revenue, so moving one factory out of Thailand means that there is a chance that AH and SAT could lose part of sales revenue to Isuzu.
In this scenario, AH’s profit in 2024 is expected to have a downside of around 12%, which will reduce the target price (22024) by 23% to 34 baht from 44 baht because P/E is reduced to 7x from 8x for Reflection. negative trend in the future, therefore, it is recommended that if the automotive stock price falls beyond scenario 2, it may be time for investors to come back to invest again. The dividend yield should remain attractive.