AAPICO Hitech Public Company (AH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 15.1% YoY to ฿6,615 million, with net profit down to ฿204.8 million due to weak economic conditions and lower Thai auto production.

• Gross margin fell to 8.8% from 11.7% YoY, and net profit margin was 3.1%.

• The company maintains a strong balance sheet with cash and fixed deposits over ฿2,000 million and interest-bearing debt to equity at 0.4x.

• EV-related revenue is estimated at 5% of the automotive parts business in 2024, with new EV orders and a new EV distribution business launching in Malaysia.

• Share repurchase program executed, acquiring 4.1% of shares, and dividend payout policy raised from 10% to 30% of net profit after tax.

Financial highlights

• 9M 2024 revenue dropped 11.3% YoY to ฿20,682 million; Q3 net profit at ฿204.8 million, down from ฿501 million YoY.

• Gross margin for Q3 at 8.8% (down from 11.7% YoY); 9M gross margin at 9%.

• Adjusted EBIT margin for 9M 2024 was 7.3%, down from 10.0% in 9M 2023.

• Q3 FX loss of ฿7.2 million vs. gain of ฿69.3 million YoY; large translation losses impacted comprehensive income.

• Basic EPS for Q3 2024 was ฿0.59 (Q3 2023: ฿1.41); for nine months, ฿1.78 (2023: ฿4.15).

Outlook and guidance

• Q4 revenue expected to be slightly softer than Q3, mainly due to Thailand.

• Automotive industry recovery anticipated to begin in Q3 2025, with risks from high household debt, restricted financing, and global demand.

• Management is evaluating the impact of new financial reporting standards effective 2025.