Stock Dimension- AH Earnings were hit hard and deteriorated with the auto industry. But the broker still recommends buying. Trading at a low P/E paid good dividends as the price fell sharply.
AH or AAPICO Hitech Public Company Limited by Yuanta Securities (thailand) expects Q1/2024 profit to fall 23% QoQ and 47% YoY following a slowdown in the automobile manufacturing sector. Competition for market share from lower purchasing power and mostly imported EVs is expected to start recovering operating results in the second half of 2024, benefiting from the positive results of economic stimulus measures. And the joint venture business Purem AAPICO started turning profitable. We still recommend buying but the base price has been reduced from 39.90 baht to 31.1 baht.
The budget will recover in the second half of the year
Maybank Securities is still a BUY recommendation, with the share price down 20% YTD, trading at a low P/E of 4.9 times the current share price, and a nice dividend yield of 7.1% through 2024. Profits are expected to decline by 13% and fall by 7% in 2024, but in 2025 it will be a target price of 32 baht.
The broker still recommends buying Low P/E-YieldDividend 7%
Krungsri Securities expects AH's profit to fall 1% this year due to automobile production. This is not noticeable in Thailand, again there is no profit sharing from SAKTHI to help, especially in Q1/67 where the budget will decrease in the short term. That compares to a record high in Q1/24, but the stock price has fallen nearly 40% since Q3/23, reflecting a weaker outlook for the auto sector and expectations of rising profits. The rate has already fallen this year. Also, the share price has fallen significantly.
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