AH shares hits ceiling as car manufacturing sentiment recovers globally

On Friday, shares of AAPICO Hitech PCL (AH), a leading automotive industrial firm, rose 14.59 per cent to 10.60 baht per share, hitting its price ceiling.

The jump in share price was the highest in the past six months but the prior closing price of 9.25 baht at 0.44 times of the Price to Book Value (P/BV) was low from three years of bad performance.

Yeap Swee Chuan, AAPICO president, revealed this week that the company’s outlook for the second half of 2020 is expected to improve with the utilization rate rebounding back to 80 per cent of the first quarter.

The sales outlook for 2020 is estimated at 15 billion baht, declining from 2019’s 19.4 billion baht. The revenue in the first half already amounted to more than 7.2 billion baht.

Yeap Swee Chuan said that the overseas production bases are about to recover especially in China with the relaxation of lockdown measures.

“Although the industry as a whole may not meet the target, there are no plans for a capital increase at all” the president added.

Cars export

The rise in AH shares poses some curiosities as analysts had predicted that car manufacturing may only see a gradual chance to recover with the main concern rising from the second wave of the COVID-19 pandemic.

Earlier, The Federation of Thai Industries (FTI) forecasted that the total production of cars in 2020 would at around 1.4 million units, 700,000 for the domestic market, and another 700,000 for the export market.

So far, the first half of 2020 has seen the production of 600,000 units and it is expected to increase another 800,000 units to meet the target.

300,000 people are still facing the prospect of job losses if the domestic and global demand continues to stay low.

At present, the Thai automobile industry employs around 850,000 people and contributes roughly 10 per cent of the country’s GDP.

Analysts from Maybank Kim Eng and Yuanta Securities said that AH would gain profit in the second half of 2020 but the sector is still looking at annual losses.

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart

Advertisement -


Phuket Governor was not informed of Chinese arrivals in Phuket next week

The Phuket Governor said on Wednesday that he had not been officially informed about the first group...
Advertisement -
Advertisement -

Latest article

SET resumes pre-Covid short-selling rules, leading to more volatility

The Stock Exchange of Thailand (SET), on Thursday, has returned to a normal 30 per cent ceiling-floor and short-selling rules from the...

Opinion: If Thaksin’s son-in-law becomes leader then Pheu Thai will have failed to evolve, again

Thailand’s largest opposition party Pheu Thai is due to select a new leader on Thursday with many tipping THaksin Shinawatra’s son-in-law Nuttaphong...

Thaksin’s son-in-law tipped to be the next leader of Pheu Thai Party

Nuttaphong Kunakornwong, the son-in-law of exiled Prime Minister Thaksin Shinawatra, is tipped to be the next leader of Pheu Thai, sources inside the...

Miss Universe Thailand favorite Cheraim Chayathanus disqualified for spying

Miss Universe Thailand 2020 (MUT) favorite Chayathanus ‘Cheraim’ Saradatta has been disqualified from the race after it was revealed that her manager...

Economy to contract by 8.5 per cent in second half with new tourist arrivals not helping

The Thai economy has “slightly” improved in August, the Bank of Thailand (BOT) said on Wednesday.The improvement was...