AH expects revenues in 2023 to rise by double digit as EV demand surges and chip shortages abate

AAPICO Hitech Plc (AH), one of Thailand’s leading auto parts makers, said it was expecting its revenues in 2023 to rise by double-digit despite the expected global economic slowdown.

AH, which is the maker of chassis for vehicles from Thailand to China and India, said that it was expecting its revenues to rise by as much as 15% in 2023 as demand for electric vehicles (EVs) continues to surge.

Yeap Sin Ru, chief of accounting and finance at AH, said the company targets 2023 sales growth of 10-15% with a gross profit margin of 10-12%.

Yeap said that sales will be boosted by new orders from firms that have been focusing on EVs.

For example, Vinfast will procure body parts worth as much as 500-600 million Baht while axles for Ford cars will increase to 1.1 – 1.2 billion Baht in 2023, from a mere 700 million Baht seen during this year.

The company said that the rise in production was helped by the fact that the chip shortage has been resolved to a great degree.

AH, Yeap said, was ready to set an investment budget of 600 million Baht for 2023. The company is still looking for opportunities to grow in the United States and Japan, which are major customer bases.

As for Q4 2022 earnings outlook, it is expected to be better than Q3 2022 because VinFast’s contribution to the bottom line would kick in, and Q4 will see exports rise more than Q3 2022, ensuring revenue this year will grow by more than 30%.

AH has seen its fortunes turn around and investors have been actively punting on the maker of chassis of cars and other parts, as demand for automotives continues to remain robust despite the slower economic growth of the country.

The opening of the economy to tourism, a key component of the calculation of the gross domestic product (GDP), has helped prove as a catalyst for potential buyers to start to look to take a punt.

Adisak Prombun, an analyst at Krungsri Securities, said he remains optimistic about the outlook for 2022 as (1) demand is recovering, (2) new orders have been added from the latest pickup trucks, and (3) chip shortages have eased.

Krungsri raised its target price to 36 Baht (from 34).

He anticipates vehicle production to rise this year and into next year, while exports continue to remain strong as well.

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart


Ivermectin not effective in treating Covid-19, joint Mahidol-Oxford study shows

Ivermectin is not shown to be effective against Covid-19 in clinical trials according to the findings of a joint...

Latest article