AH to Keep Recovering in 2021 as Auto Industry Rebound, Analyst Recomm. “BUY” at ฿28.70

Aapico Hitech Public Company Limited (AH) is expected to keep recovering in 2021. The analyst estimated full-year earnings to stand out around 1,020 million baht, growing significantly 560% YoY.

 

For 2021 outlook, the analyst foresaw a revenue of 19,748 million baht, an increase of 15% YoY, as the Covid-19 pandemic has been slowing down, showing signs of economic recovery since the second half of 2020, moreover, some businesses that were in the same industry as AP have closed during the pandemic. However, the analyst estimated domestic auto production will increase to 1.5 million units this year, which is in line with the current travel behavior trend.

 

According to the AH’s analyst meeting held on March 12, the company expected its subsidiary-based in Portugal (AAPICO Maia) to be a key driver for international sales, together with the opening of 4 new dealerships in Thailand and Malaysia.

 

AH made a turnaround to earnings of 148 million baht (EPS: ฿0.46/share) in 2020 compared to net loss of 179.51 million in the same period of a year earlier, mainly due to a strong recovery in demand and sales volume starting from the second half of 2020.     

 

In 4Q20, sales volume of automobiles in Thailand rose by 4.8% YoY, while the number of car production increased by 5.3% YoY. The analyst stated that this trend will continue this year. 

 

Trinity Securities has given a “BUY” recommendation on AH with a target price of ฿28.70/share.