MGC mulling SET listing
Master Group Corporation (Asia) (MGC), a local provider of automobile services, is considering listing on the stock market before 2020 to raise proceeds to finance its future mergers and acquisitions across Asean.
According to managing director Sunhavut Thamchuanviriya, the group is in the process of appointing financial advisers and strengthen operating results of all business units.
"MGC has been in business for 16 years and is a large corporation now. It is time to think beyond staying complacent only in Thailand," he said.
Founded in 2000, MGC operates eight business units: new cars from BMW, Mini, Rolls-Royce, Aston Martin, Maserati, Honda and Nissan; used cars; car service centres; rental services; an insurance brokerage; an auto training centre; information technology development; and yacht distribution for Azimut.
Yesterday, the group reported its revenue totalled 20 billion baht last year, a 7% fall from a year before attributed to cloudy sentiments in the country's automotive sector.
Mr Sunhavut said the 2016 performance was well below its expectation of 25 billion baht because new car sales from all brands shrank by 15% to 8,500 cars, except Maserati which starts operation this year.
MGC took over the rights to import and distribute Maserati in Thailand last November from Empire Motor Sport Co, and signed a new contract with the Modena-based parent firm on Tuesday.
MGC has invested about 150 million baht in setting up its new subsidiary Design Motorwork Co to handle Maserati distribution in Thailand, which includes building showrooms.
According to Mr Sunhavut, last year Honda car sales dropped sharply by 34.5% to 3,100 units last year, with Nissan sales recording coming in at only 250 units, well below its target of 600.
The new car sales represent 60% of MGC's overall revenue.
However, MGC's used car sales grew by 40% to 2,000 cars and its car rental fleet rose by 10% to 5,000 cars, thanks to the country's healthy tourism sector.
For 2017, Mr Sunhavut expects MGC's revenue to grow by 10-15% to 23 billion baht.
Its new car sales are targeted to increase by 17.6% to 10,000 units, with used car sales to grow by 10% to 2,200 vehicles this year.
According to Mr Sunhavut, MGC has earmarked allocated 2 billion baht for investment this year, half of which will be slated for an expansion of the provincial market and its car rental fleet.
The remainder will go towards overseas expansion, mostly for MGC's car rental business in Vietnam and Myanmar. At present, it runs car rental businesses in Laos and Malaysia.
"A joint venture will be made in Vietnam, in which we expect to set up a car rental business within 2017, while the opportunity in Myanmar is under a feasibility study," said Mr Sunhavut.