Listed automotive and parts companies delivered promising fiveyear total shareholder returns last year but the most recent one-year returns were mixed.

For the five-year term, almost all the companies trading in the automotive sector of the Stock Exchange of Thailand recorded double-digit TSR figures. Only Siam Pan Group Plc (SPG), a lubricant and auto battery distributor, and Swedish Motor Plc (SMC), an authorised distributor of Volvo, registered negative returns of -1.0% and -4.9% respectively.

Thai Stanley Electric Plc (STANLY), an automotive bulb and lighting equipment producer, recorded the highest fiveyear return of 70.9% compared with an average five-year TSR for the sector of 47.8%, followed by Inoue Rubber (Thailand) Plc (IRC), a producer of motorcycle tyres, with 52.2%.

A key factor for the promising TSR was high auto industry growth, particularly in passenger cars and one-tons pickup truck sales, following the recovery of the country's economy.

According to the Bank of Thailand, the Industrial Manufacturing Index for the automotive industry, which indicates production levels, stood at 79.9 in 1999. It jumped to 124.7 in 2001, 148.4 in 2002, 196.7 in 2003, 263.9 in 2004 and 251.8 last year.

According to an analyst at Kim Eng Securities, Thai Stanley has a 78-80% share of the auto lamp market and a 95% share of the motorcycle lighting market. The company was therefore a major beneficiary of the strong growth of the domestic auto industry.

Another key factor that drove the company's sales was higher assembly rates for various models such as the Toyota's Vios, Fortuner and Vigo; Isuzu's MU-7 and D-Max; Mazda 3; Honda's Jazz, City and Accord; and the Mitsubishi Triton.

Stanley thrived last year on higher assembly rates for models of major customers such as Toyota.

Thailand's automotive industry grew at a slower pace last year due to the economic slowdown, increasing interest rates and higher oil prices.

However, Thai Stanley also showed the sector's highest one-year TSR at 13.2%, compared with the disappointing -4.7% average for the sector .

An executive at Thai Stanley, who asked not to be named, estimated that the company's revenue for its financial year from April 2005 to March 2006 grew by 14% from 7.03 billion baht the previous year.

He said that despite the industry growth, the company had not planned any new production lines but it would focus on creating value from existing products, particularly lamps, bulbs, and moulds and dies. ``We believe revenue growth this year will be higher than that of last year with the gross profit margin up to 20%.''

The company's revenue structure consists of 87% from auto lamps, 8% from auto bulbs, and 5% from mould and dye.

Swedish Motor Corporation Plc had the poorest five-year TSR of -4.9%, but the company offered a double-digit one year TSR of 12.5%, impressively above the -4.7% average.

The company credited the completion of a prolonged debt-restructuring process for the positive return, that began following the economic crisis in 1997.

When restructuring was over in 2004, the company achieved a net profit of 194.3 million baht, compared with 88.6 million baht for 2003.

But the company recorded a loss of 89.8 million baht last year.

According to president Jan Eriksson, in 2004 SMC made a considerable net profit of 194.3 million baht, related to successful debt restructuring. While last year was a year of operational restructuring, closing down unprofitable business and starting new business, which resulted in the net loss of 89.8 million baht.

However, investors' interest returned when the company diversified its business to represent other car brands like Ford and Mazda from just Volvo.

Although it had accumulated losses of 1.8 billion baht, the company's share price in the first half of 2005 rose sharply on speculation about new partners.