PACO Public Company Limited is confident in its continuous business growth, capitalizing on the booming EV car market. The company is set to recognize revenue from a major project this quarter, aligning with the government's policy to support the electric vehicle industry and driving ongoing growth in the OEM sector.

Mr. Somchai Lertkacharakitti, CEO of PACO, stated that PACO believes it will benefit from the government's promotion of the electric vehicle (EV) manufacturing industry, aiming to make Thailand one of Asia's EV production hubs. As an OEM manufacturer of automotive air conditioning parts, PACO is well-equipped with technology and experience in producing electric vehicle components, including battery coolers and air conditioning parts for Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (PHEV) in replacement parts (REM) for domestic sales and export.

PACO has successfully entered the OEM business, producing air conditioning parts for automotive manufacturers, having signed its first contract with a major EV and PHEV manufacturer, which is a growing global trend. The company has received orders worth 1.2 billion baht, ensuring stable revenue for over five years in the OEM sector and ten years for the OES parts manufacturing business. Furthermore, PACO has been approached by several manufacturers for ongoing production contracts for air conditioning parts and other components, indicating a clear growth potential in the OEM business. The industry is expanding again due to the global economic recovery, along with government policies encouraging automakers to assemble electric vehicles domestically with significant tax incentives. Additionally, the gradual introduction of new electric vehicle models into the market and PACO's standard production line and machinery allow for immediate product delivery without additional investment. With few competitors in the business, PACO is confident in its ability to secure more OEM contracts,” Mr. Somchai concluded.

PACO is the first Thai manufacturer to produce battery coolers for Tesla, the world's number one electric vehicle brand, specifically for the Tesla Model X and Tesla Model 3, as well as for Plug-in Hybrid vehicles like the current BMW Series 3 and Series 5 (G20 and G30), which are highly popular worldwide. PACO has begun marketing battery coolers in both export and domestic markets, anticipating that government measures to stimulate the electric vehicle market will help revive the automotive industry in Thailand. If the COVID-19 pandemic situation improves, it will also contribute to the global automotive industry's recovery. The company remains committed to continuously developing new products to meet the demands of both the Thai and international automotive markets.

“For the fiscal year 2021, which showed clear growth, the company reported total revenue of 696.5 million baht, an increase from 667 million baht the previous year, with net profit rising by 40% to 108 million baht. PACO's revenue and net profit have improved in line with the recovery of the Thai automotive industry and the rapid recovery of the global economy. In 2022, PACO expects total revenue to continue growing by approximately 20-25%, driven by the growth of its core REM business, which is expanding in international markets due to the ongoing global economic recovery, and from the domestic market, where the number of PACO Auto Hub branches has increased to 300, along with a continuous introduction of new product lines such as automotive radiators, air conditioning compressors, automotive suspension parts, oil coolers, alternators, and starters. Additionally, the company is expanding its air conditioning line for luxury cars. Meanwhile, revenue from the new OEM business will start to come in this year after recently securing contracts, and it is expected to increase significantly next year. The Thai automotive market and the company's main export markets in the Middle East are improving due to rising global oil prices. Therefore, we are confident that this year the company's performance will meet its targets,” Mr. Somchai concluded.

About the Company

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