Synergetic Auto Performance (ASAP), a SET-listed car rental service operator, is planning to invest up to 2 billion baht to expand its business, saying China's reopening would provide a boost to the short-term rental car business.
Chief executive Songvit Titipoonya said China's opening from Jan 8 would positively affect the company's car rental business as the number of tourist arrivals should increase significantly.
To cash in on the growth in tourism, Mr Songvit said ASAP is preparing to invest 1.5-2 billion baht to purchase 2,000-2,500 new cars to expand its current fleet of 11,966 rental cars.
Prior to the pandemic, Chinese customers accounted for up to half of the company's short-term car rental income.
ASAP set a revenue target of 3.8 billion baht for 2023 based on improving domestic tourism, the return of Chinese tourists and the recovery of economic activities in Thailand, he said.
The company's revenue totalled 2.88 billion baht in the first nine months of 2022, down 2% from 2.94 billion for the same period in 2021.
Net profit amounted to 83.5 million baht for the period, compared with a net loss of 180 million baht a year earlier.
The improvement was driven by a gain in car sales and short-term rental revenue, together with profit from changing the fair value of investment property of 52.1 million baht, said Mr Songvit.
He said ASAP is exploring issuing a utility token under the name "Asap Coin" to support its car rental business and other ventures. More details about the coin should be finalised in the first half of 2023, said Mr Songvit.