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AAPICO Hitech Public Co., Ltd. Business Report FY ended Dec. 2018
Financial Overview |
(in million THB) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of change (%) | Factors | |
| Sales | 17,737 | 16,642 | 6.6 | 1) |
| Net Profit | 1,299 | 1,158 | 12.2 | 2) |
Factors
1) Sales
-The Company’s sales for the fiscal year ended December 31, 2018 increased by 6.6% over the previous year to THB 17,737 million. The AAPICO Group's revenue is mainly contributed by its OEM automotive parts business (64% of total revenue). In 2018, the sales contribution from the IoT Connectivity & Mobility business was nominal at 0.1% of the total revenue.
2) Net Profit
-The Company’s net profit increased by 12.2% to THB 1,299 million in the fiscal year ended December 31, 2018. Compared to last year, the net profit improvement was driven by higher sales, increased earnings and share of profit from associates, as well as from the continual efficiency improvement and strict cost control and cost reduction measures.
Joint Venture
-The Company has announced a joint venture (JV) with Vinfast Trading & Production, a member of VinGroup (Vietnam), to set up a press shop and assembly operations in Vinfast’s Supplier Park in Haiphong, Vietnam. The purpose of the JV is to supply BIW (Body in White) parts for the first two models of Vinfast vehicles – a sedan and a SUV car – to be produced by the third quarter of 2019. The Total investment for this project would be THB 1.8 billion with the Company and Vinfast holding 51% and 49% equity, respectively. The plant will be built on a total area of 9.1 hectares in Vinfast’s Supplier Park. While Vinfast will provide the premises, invest USD 20 million to build plant and create the best possible conditions for the factory operation, the Company will be responsible for the overall management of the project including total technology and know-how, plant deisng layout, and equipment sizing. In addition, the Company will also produce and provide all the jigs and dies for the Vinfast vehicles, which will have a total estimated value of THB 2.5 billion. (From a press release on June 12, 2018)
Investment outside Thailand
<India>
-The Company announced an additional investment in Indian holding company Sakthi Global Auto Holdings Limited (SGAH) of USD 65 million (THB 2.14 billion). Of the total budget, USD 25 million will be allocated for 4,977 newly issued ordinary shares in SGAH, representing 24.89% of all registered shares of SGAH. SGAH shares will be owned by the Company and its subsidiary, AAPICO Investments. The remaining USD 40 million (THB 1.31 billion) will go to loans from the Company to SGAH with an interest rate of 10.00% per year for a period of 3 years. After the Company completes this transaction, its direct and indirect stake will increase from 25.10% to 49.99% of all registered shares in SGAH. (From a press release on October 9, 2018)
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