PACO, or President Automobile Industries Public Company Limited, showcases continuous growth in revenue and net profit, with orders secured until mid-next year. The board has approved a free warrant distribution at a ratio of 5:1 to support ongoing business expansion, focusing on both OEM and REM operations domestically and internationally, with confidence in a 20% revenue growth this year.

Mr. Somchai Lertkacharakitti, CEO of President Automobile Industries Public Company Limited (“PACO”), a leading manufacturer of automotive air conditioning parts in Thailand, revealed the Q3/2022 performance, stating, “The company achieved total revenue of 260 million baht, a 36% increase, and a net profit of 35 million baht, up 9% compared to Q3 of the previous year, which recorded total revenue of 192 million baht and a net profit of 32 million baht. The growth in total revenue and net profit for PACO aligns with the automotive manufacturing industry and the increasing accumulation of vehicles, alongside the recovering Thai and global economies. For the financial statements for the nine-month period (January-September 2022), total revenue was 688 million baht, a 19% increase from the same period last year, which had total revenue of 578 million baht, with a net profit of 80.4 million baht compared to 92 million baht in the previous year.”

Additionally, the company’s board has approved the issuance of warrants (PACO-W1) for all existing shareholders at a rate of 5 existing shares for 1 warrant, with a conversion price of 3 baht per share. This is aimed at enhancing financial liquidity to support anticipated continuous business growth. The company has set the record date for shareholders entitled to the warrants on December 23, 2022.

PACO is focused on expanding its existing REM business in the aftermarket parts sector, which has a favorable net margin due to self-determined pricing and less price competition, as well as its new OEM business for automotive air conditioning products to strengthen the company’s stability. PACO has successfully signed a contract with a major customer, a leading automotive manufacturer focusing on electric vehicles (EV) and plug-in hybrids (PHEV), which are increasingly popular globally. PACO has received orders worth 1.2 billion baht, ensuring stable revenue for over 5 years for the OEM business and supporting revenue for 10 years for the OES business. Furthermore, the company has been approached by several manufacturers to offer production services for automotive air conditioning parts and other components, indicating a clear growth potential in the OEM business, with high growth opportunities as the industry expands again due to the global economic recovery. PACO has a production line and machinery that meet international standards, ready to produce products for customers immediately without additional investment, and faces few competitors in the business, thus confident in securing more OEM production contracts.

Meanwhile, the company has orders extending until mid-2023 and expects this year’s revenue to grow to the target of 900 million baht, or 30% as planned. The company is preparing to expand its export market, which is expected to perform well this year, as the REM business will benefit from the economic downturn, leading customers to delay purchasing new vehicles. Additionally, the issue of container shortages has significantly eased, allowing the company to increase exports, focusing on markets in the Middle East, the United States, and ASEAN. In Q3, the company adjusted product prices to maintain profit margins from the previous quarter, and global aluminum prices have decreased, resulting in satisfactory net profits. PACO is committed to expanding both export and domestic markets, expecting business growth from the first half of the year, supported by the company’s price adjustments reflecting higher production costs for aluminum, steel, oil, and plastic, alongside the weakening baht.

Domestically, PACO will expand its comprehensive automotive air conditioning parts retail network under the PACO Auto Hub brand to enhance brand recognition among car users in the country, aiming to increase domestic sales and strengthen distribution channels while building confidence in Thai products. The goal is to have 300 PACO Auto Hub stores by the end of this year, with over 170 stores already opened nationwide. The stores will primarily sell PACO brand hot and cold coils, along with other products such as refrigerant hoses and air conditioning fluids, providing a one-stop solution for customers. The company aims for sales through PACO Auto Hub to support domestic revenue, which accounted for 55% of total revenue in 2022, driving growth of no less than 10%, with plans for continuous expansion to 500 branches in the future.

As the EV automotive market trend continues to rise amid high oil prices, coupled with government policies promoting the electric vehicle manufacturing industry (EV) to make Thailand one of the EV production hubs in Asia, many major global EV manufacturers are targeting to establish production bases in Thailand. This presents a significant business opportunity for PACO to fully engage in the EV industry, as PACO is an OEM manufacturer of automotive air conditioning parts with readiness in technology and experience in producing electric vehicle components, including battery coolers and air conditioning parts for electric vehicles (EV) in both BEV (Battery EV) and PHEV (Plug-in Hybrid) formats, as replacement parts (REM) for domestic sales and exports.

President Automobile Industries Public Company Limited or PACO has a registered capital of 500 million baht and has been established for over 30 years, being one of the pioneers in manufacturing automotive air conditioning parts in Thailand. The company has developed a comprehensive range of automotive air conditioning replacement parts, including hot and cold coils for medium to high-selling vehicles, covering Japanese, European, and American cars, totaling over 2,600 models. The company operates 3 manufacturing plants located in Samut Sakhon and a distribution center in Bang Bon, Bangkok. The company is certified with the international standard ISO 9001:2015 and sells products domestically and exports to North America, Europe, South America, Asia, and Australia.