MGC-Asia bullish on revenue outlook

MGC-Asia bullish on revenue outlook

SET president Pakorn Peetathawatchai, centre, presided at an event marking Millennium Group Corporation's first day of trading on the SET yesterday.
SET president Pakorn Peetathawatchai, centre, presided at an event marking Millennium Group Corporation's first day of trading on the SET yesterday.

Car dealer Millennium Group Corporation (MGC-Asia) is aiming for double-digit growth in revenue this year thanks to a significant recovery in the automotive industry, with plans to invest more in the electric vehicle (EV) segment.

MGC-Asia, whose core businesses are the importation and distribution of automobiles and yachts, made its debut on the Stock of Exchange Thailand (SET) yesterday with 280 million shares or 25% of the company's total shares offered to the public.

The price increased to 8.45 baht after opening at 7.95 baht, mobilising 2.23 billion baht in total for the company's business expansion.

The company wants to branch out to other sectors such as EVs, financial services, and luxury marine vehicles targeting high-end customers, said chief executive Sunhavut Thamchuanviriya.

The company expects significant benefits from the auto industry which is now recovering, as reflected by the significant number of car bookings made at the 44th Bangkok International Motor Show which was held from March 22 to April 2 this year.

"The increase in car sales will benefit the automotive retail sector, after sales and maintenance service business, which is expected to generate revenues for the company in the long term," said Mr Sunhavut.

"I am confident MGC-Asia has the potential to continue growing due to the availability of funds and a strong business ecosystem."

MGC-Asia was recently appointed by Chris-Craft Corporation -- an American boat manufacturer -- as its exclusive authorised retailer in Thailand.

"The global marine market's compound annual growth rate is about 7%, with Asia-Pacific ranking third. The recreational boat market is growing significantly, especially after the pandemic made people focus more on privacy," said Mr Sunhavut.

"We plan to expand in Asean, a fast-growing market of more than 700 million people, 170,000 kilometres of coastline, and many important waterways, and we are looking for interested dealers across the region," said Bjorn Antonsson, MGC-Asia's director of marine international business.

The firm reported total revenue of 23 billion baht last year, an average increase of 6.7% per year from 21.4 billion baht in 2021 and 20.3 billion in 2020 as the overall economy gradually recovered from the pandemic.

Net profit grew 102% from 296 million baht in 2021 to 596 million baht last year, due mainly to an increase in revenue from sales and services.

Globlex Securities said among the factors that drove MGC-Asia's gross profit margin was a limited supply of BMW cars which resulted in higher margins as price competition was lowered, as well as sales of special BMW vehicles for the Apec meetings held in Bangkok. As well, its unit's short-term car rental service has gained significantly from the recovery of the country's tourism industry.

Analysts set a consensus target price of 12.30-13.40 baht for MGC-Asia, the brokerage noted.

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