AAPICO Hitech Public Co., Ltd. Business Report FY ended Dec. 2016

Financial Overview

(in million THB)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 Rate of change (%) Factors
Sales 15,139 14,993 1.0 1)
Net Profit 570 338 68.6 2)

1) Sales
-The Company’s sales for the fiscal year ended December 31, 2016 increased by 1.0% over the previous year to THB 15,139 million. Increases in sales volume were partially offset by a decrease in steel price as well as negative currency effects due to a weaker Malaysian Ringgit. Sales in OEM parts remained stable, as volume increases in Thailand was offset by sale decreases in China. Sales in the Company’s car dealership business increased by 3.5% due to strong performance in Malaysia.

2) Net Profit
-The Company’s net profit increased by 68.6% to THB 570 million in the fiscal year ended December 31, 2016. The increase in profit was caused by efficiency improvements, cost reduction measures, decreased financial costs, and increased profit shares from investments in associate companies.

Recent Developments

-In 2016, the Company established a wholly owned subsidiary named AAPICO Venture Company Limited to manage mergers and acquisitions and to support investments in start-ups or rapidly developing businesses.


-The Company won the following awards in 2016:

Received Company Award Awarding Company
AAPICO Structure Products Co., Ltd., Certificate of Achievement for Quality Isuzu
AAPICO Precision Co., Ltd. Certificate of Achievement for Quality Isuzu
AAPICO Plastic plc Certificate of Achievement for Quality Isuzu
AAPICO Amata Co., Ltd. Certificate of Co-operation Isuzu
AAPICO Hitech plc Supplier Quality Excellence Award GM ASEAN
AAPICO Hitech plc TCC Certificate of Appreciation Advance Group of Toyota Co-operation Club

R&D Facilities

-The Company is hopeful that its new research and development unit in Ayutthaya will help raise profit margins and competitiveness in the long term. The new R&D unit integrates existing operations in production facilities in Ayutthaya, Samut Prakan, Rayong, and Chon Buri, and will enable the firm to expand into new segments such as electric vehicle (EV) parts. The Company is set to increase spending in research and development every single year from just THB 10 million currently invested. (From a Bangkok Post article on November 25, 2016)

-In 2016, the Company invested in Mappico Company Limited, a company which focuses on research and development of software and technology related to vehicle navigation and logistics.

Capital Expenditures

(in million THB)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
Overall 167 273 460

-In 2016, the Company has set aside an investment budget of THB 400 million, primarily for machine maintenance. The Company invested THB 50 million in the first quarter. (From a press release on May 31, 2016)