Leading brokerage firm Yuanta Securities (Thailand) has released an analysis recommending PACO, anticipating strong profit growth in the second half of the year driven by the automotive air conditioning parts replacement business.

Mr. Somchai Lertkacharakitti, CEO of President Automobile Industries Public Company Limited ("PACO"), stated that "PACO's core business is the production and sale of replacement automotive parts (REM) both domestically and for export. The company benefits from the continuously weakening Thai baht, as export revenue accounts for over 55% of total revenue.

"Additionally, the price of the main raw material, aluminum, has decreased since the first quarter, improving the gross profit margin. The company also raised product prices in the first half of the year, leading to a significant revenue growth trend in the second half, which is the high season, expected to surpass the first half considerably."

Furthermore, the analysis from Yuanta Securities (Thailand) predicts that PACO's performance will rebound strongly due to: 1. Revenue growth in line with the automotive manufacturing industry, driven by an increase in the number of accumulated vehicles, positively impacting the replacement parts market (REM). The company is also expanding its PACO Auto Hub retail network from 170 branches to 300 by the end of this year. 2. The company adjusted its product prices in the first half, which is expected to bring profit margins closer to normal levels. This year, the company aims for a revenue growth of 29% to reach 900 million baht, with an anticipated growth of around 15% next year. Therefore, they recommend a technical resistance range of 2.72 - 2.82 baht.