[Gen-AI Analysis] AAPICO Hitech Public Co., Ltd. Business Report FY2010 - MarkLines Automotive Information & Gen-AI Platform

AAPICO Hitech Public Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in million Baht)

	FY2010	FY2009	Rate of change(%)	Factors
Overall
Sales	11,344	7,114	59.5	-Sales increased year-on-year supported by the significant growth of the Thai automotive industry, which pushed up vehicle production in the country by 64 percent year-on-year.
Net profit	394	(116)	-	-

OEM press parts manufacturing
-Sales amounted to Baht 7,389 m (FY2009: RM 5,085 m) which were up 45%.
-Sales increased due to the growth of the automotive industry.

Market share

Products	*Market share (%)
Chassis frames	36
Steel fuel tanks	34
Door checks	25
Plastic fuel tanks	7

*According to the Company.

Business perspective

-In view of substantial increases in vehicle sales and production volumes in 2010, the automotive industry is expected to maintain a stable growth over the next few years due to growing global demand and launches of new vehicle models.
-The company won contracts to supply products for new vehicle models, which include eco cars made by Honda, pickup trucks produced by Ford, Mazda, Isuzu and General Motors, as well as 4-door eco cars built by Nissan.
-In preparation for supplying its products for new vehicle models, the company has been making investments in boosting its production capacity at AAPICO Hitech PLC., which is making stamped products in Rayong, as well as AAPICO Structural Products Co., Ltd in Chonburi.

Joint ventures

-In June 2010, the Company established Thai Takagi Seiko Co., Ltd., a joint venture between AAPICO Hitech PLC., Takagi Seiko Corporation of Japan and Sojitz Management (Thailand) Co., Ltd., to manufacture plastic parts for Honda motorcycles and Suzuki Eco-car.

Award

AAPICO Amata Co., Ltd.
-In 2010, the Company received "the Best in QCD Improvement Award" from Isuzu Motors (Thailand) Co., Ltd. and Isuzu Supplier Group.

Investment Activities

Capital Expenditures

(in million Baht)

	FY2010	FY2009	Rate of change(%)
Overall	5,546	4,975	11.5

Major factors behind the increase:
-The Company purchased new production equipment.
-The Company constructed new factory building and retooled its facilities.

Investment in Thailand

AAPICO Hitech Public Co., Ltd.
-In 2010, AAPICO Hitech established a new stamping factory at the Amata City Industrial Estate, Rayong in order to meet increased demand. The plant will manufacture stamped products for Ford and Mazda's new pickup trucks.

AAPICO Structural Products Company Limited
-In 2010, AAPICO Structural Products introduced 57 new robots for welding operations. In 2011, the plant will manufacture chassis frames for 420,000 pickup trucks produced by Isuzu.

Investment Outside Thailand

<China>
-The Company has been constructing its first totally owned factory in Kunshan, China. The new factory will be in full operation by mid 2012, consisting of two new factories, one for machining (13,519 square meters) and the other for forging (9,415 square meters).