SET-listed auto parts maker Somboon Advance Technology Plc (SAT) is bullish on this year's revenue prospects after higher first-quarter operating results.
The company projects revenue will recover to growth of up to 10% this year, raking in between 8.7 and 9.1 billion baht.
Revenue declined over the past two years to 8.24 billion baht in 2014 and 9.35 billion in 2013 from a high of 9.6 billion in 2012.
President Yongkiat Kitaphanich said higher car production would lift the company’s revenue prospects.
SAT forecast overall industry output would increase to 2 million vehicles this year after dropping 23.5% last year to 1.88 million.
The company recorded first-quarter revenue of 2.43 billion baht, up by 15.3% year-on-year, for a net profit of 194 million, up by 15.5%.
“The domestic market remains in a slump, but car exports should increase significantly, helping to shore up car production,” Mr Yongkiat said.
“We expect the new excise tax on vehicles will help to stimulate sales of certain models in the second half of this year. Their prices will be 20,000 to 30,000 baht higher per vehicle next year due to the new tax.”
The new tax regime is based on carbon dioxide emissions, E85-gasohol compatibility and fuel efficiency instead of engine size as before.
The excise tax on vehicles with carbon dioxide emissions below 100 grammes per kilometre will be cut to 12-14% for eco-cars from 17% at present, but the 10% tax rate for hybrid vehicles will remain unchanged.
The latest Federation of Thai Industries report recorded 410,362 vehicle exports in the first four months, up by 9.78% year-on-year. Shipments were worth 186 billion baht, also up by 9.78%.
In contrast, domestic sales decreased by 15.3% for the January-April period to 251,845 vehicles.
Mr Yongkiat said new models would lift SAT’s revenue this year.
He expects SAT’s annual revenue will reach 10 billion baht by 2017, with the industry producing 2.3 million vehicles.
SAT shares closed yesterday on the SET at 18.80 baht, unchanged, in trade worth 2.39 million baht.