Equity Analysis /

Thailand: EV - Here before you know it

  • New players with big plans

  • Not disruption, but a logical progression into EV space

  • Attractive valuations

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
29 September 2022

The govt is actively promoting EV-related production in Thailand. Apart from automakers, auto-parts makers will also benefit from BOI incentives. This is a great time to buy into the coming EV wave ahead of it building critical mass. We have picked four EV-themed stocks—auto-parts makers AH and SAT, EV charger maker FORTH, and EV bus assembler NEX.

New players with big plans

NEX is expected to deliver 1,000 buses in 2H22 and will be profitable for the first time since 2017. In 2023, production is scheduled to jump to 5,000 buses. For FORTH, its EV charger business is still in its infancy; in the interim it is rolling out TAO BIN-branded automated baristas (the firm expects to have 6k TAO BIN machines operating across Thailand by YE22 and 20k by 2024). Once EV penetration has increased notably, FORTH will scale up its EV charger business (as it is currently doing with its TAO BIN machines). But before its EV charger business marks significant revenues, we expect the firm’s core profit to grow by 21% in 2022 and 77% in 2023.