SET-listed Thai Storage Battery (BAT-3K), the maker of automotive batteries, is more optimistic about its revenue this year in light of recoveries in the economy and automotive industry, after its revenue shrank 10% last year.
Veerawat Korphaibool, the company's vice-chairman, said the company expected to see revenue grow about 5% this year.
The company reported to the Stock Exchange of Thailand yesterday its consolidated revenues fell 5.86% last year to 5.29 billion baht, attributing the fall mainly to strong competition and the economic slowdown.
However, its net profit surged sharply by 71.7% to 205 million baht from 119 million the year before.
Thai Storage Battery operates a manufacturing plant at Samut Prakan's Bangpoo Industrial Estate, making 4.2 million batteries a year under three brands: 3K, Tiger and KV.
Some 95% of the company's output is manufactured to support the local replacement market.
Thai Storage Battery controls 30% of the auto battery replacement market, which sells 5 million batteries a year worth about 9 billion baht.
He forecast the market to increase 5% this year.
Mr Veerawat, also chief executive of 3K Products Co, Thai Storage Battery's wholly owned firm that runs domestic distribution, said 3K Products would spend 100 million baht this year on marketing campaigns, aiming to increase sales of active hybrid batteries from 15% of revenue to 30%.
This type of battery is more durable and has a shorter recharge period. It also does not require distilled water refills.
General batteries make up 60% of the overall market, active hybrid batteries 10-15%, while the rest of the market is lead-sealed acid batteries or dry batteries, Mr Veerawat said.
The proportion of active hybrid batteries is projected to increase to 30% this year, on par with dry batteries. The proportion of general batteries is expected to decline to 40% over the next two years, he said.
BAT-3K shares closed yesterday on the SET at 73 baht, down 50 satang, in trade worth 841,000 baht.