Equity Analysis /
Thailand

Nex Point: Trucking along

  • 4Q22 is first full operational quarter

  • Growth shifts into a higher gear next year

  • Pick-ups will define NEX’s long-term success

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
15 December 2022

The EV operation started in earnest in 4Q22. Looking to 2023, the product range will expand, generating growth and solidifying NEX’s early-mover advantage.   

4Q22 is first full operational quarter

We expect a 4Q22 core profit of Bt300-400m, a turnaround from a 4Q21 core loss of Bt10m and up massively from core earnings of Bt8m in 3Q22, as the factory will operate the entire quarter. Deliveries of EV buses will rise from 221 units in 3Q22 to 779 in 4Q22. The product range has expanded from EV buses (priced at Bt6.3m) and minibuses (Bt3.3m) in 3Q22 to tow trucks (Bt5.2m) in 4Q22. Moreover, we expect Bt389m in profit-sharing from Absolute Assembly (factory), a turnaround from a loss of Bt6m for 3Q22, as the factory will operate for the entire quarter.