AAPICO HITECH PLC [AH] Presentation for 3Q 2019 financial - - PowerPoint PPT Presentation
AAPICO HITECH PLC [AH] Presentation for 3Q 2019 financial - - PowerPoint PPT Presentation
AAPICO HITECH PLC [AH] Presentation for 3Q 2019 financial statements Disclaimer The information contained in this material has been prepared by AAPICO Hitech PLC (AH or AAPICO) solely for information purpose and does not constitute
Disclaimer
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The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO. Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no
- bligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors
affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors,
- fficers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this
- presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise)
whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is
- nly current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation
to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy
- f the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate
for such purpose. The presentation should not be construed as legal, tax, investment or other advise. ir@aapico.com | +66-(0)-2613-1504
AAPICO HITECH PUBLIC COMPANY LIMITED
Agenda
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1. Company Information 2. Automotive Industry Updates 3. Financial Performance 4. Strategy & Direction
AAPICO HITECH PUBLIC COMPANY LIMITED
AAPICO Hitech PLC
Company Overview
AAPICO HITECH PUBLIC COMPANY LIMITED
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AAPICO HITECH PUBLIC COMPANY LIMITED
- A leading OEM automotive parts manufacturer in
Thailand with global operations.
- Core businesses: OEM Auto Parts, Jigs and Dies, Car
Dealerships and IoT Connectivity & Mobility.
- Registered capital of Baht 322.65 million and paid-
up capital of Baht 322.58 million, comprising of 322,583,844 ordinary shares at par value of Baht 1 each.
- Major shareholders are Yeap Swee Chuan and
Family holding 39.32% of total capital.
Index : SET / THSI Industry/Sector : Auto Current price : Baht 14.50* Market Cap : Baht 4,677 million* P/E (YTD) : 4.90* P/BV : 0.59* Dividend yield : 6.50% TRIS / CG Rating : BBB+ /
* Data as of November 14, 2019 ** Dividend yield is calculated based on current share price
AAPICO’s Vision
AAPICO HITECH PUBLIC COMPANY LIMITED
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Where do we want to go? How do we want people to remember us?
MANUFACTURING RESEARCH & DEVELOPMENT CAR RETAILING
TO BECOME A LEAN, GREEN, HAPPY, DIGITAL WORLD-CLASS CORPORATION
- S : Safety
- Q : Quality
- C : Cost
- D : Delivery
- E : Engineering
- M : Management
(Focus Digital)
- Teamwork
- Look at problems as
- pportunities
- Love Family, Company
and Country
- Loyalty and Honesty
- Mutual Respect
- Profitability
- Reasonable Dividend
- Corporate Social
Responsibility
Happy Employees Happy Shareholders Happy Public Happy Customers AAPICO Key Fundamental Values
Core Pillars of AAPICO Business
AAPICO HITECH PUBLIC COMPANY LIMITED
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Auto Part Manufacture Car Dealerships IoT Connectivity & Mobility
Business Segments
AAPICO HITECH PUBLIC COMPANY LIMITED
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Manufacture of Auto Parts
(Thailand & China)
Car Dealerships
(Thailand & Malaysia)
IoT Connectivity
(Thailand) ~69% of Sale ~30% of Sale <1% of Sale
Thailand Malaysia
Stamping & Assemblies Forging & Machining Plastic Jigs and Dies
Countries of Operations
AAPICO HITECH PUBLIC COMPANY LIMITED
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Thailand 77% Malaysia 20% China 3%
9M 2019
Sales by Country
CHINA
Kunshan Production: Connecting rods and Copper Forging
MALAYSIA
Car dealers: Honda car Proton
THAILAND
Ayutthaya, Chonburi, Rayong, Samutprakarn
Hitech Industrial Estate
Production: Stamping parts and Stamping Dies & Jigs
Amata City Industrial Estate Chonburi
Production: Stamping & Chassis Frames and Forging & Machining Parts
Bangpli Industrial Estate
Production: Plastic Parts
Amata City Industrial Estate Rayong
Production: Stamping Parts Plastic Washers & Fuel Tanks
Mitsubishi Dealers
Navanakorn & Ramindra
Ford Dealers
Samutprakarn & Ladprao
Major OEM Customers
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Isuzu 30%
Vinfast 18% AAT** 10%
Nissan 5% AAM 4% FORD 3% DANA 3% TOYOTA 2%
Others- Parts 25%
9M 2019 Top OEM Customer Profile
**Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.
Our Partners
AAPICO HITECH PUBLIC COMPANY LIMITED
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Joint Venture
Strategic Partner Technical Partner
Automotive Industry Updates
918 918 656 624
1,604 1,573 9M18 9M19
Thailand Car Production Volume
AAPICO HITECH PUBLIC COMPANY LIMITED
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295 313 332 328 294 296 212 224 221 223 202 200
517 548 564 561 504 507
- 100
200 300 400 500 600 700
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Pick-Up/PPV Passenger Others Domestic Sales Export Sales
Total Car Production by Quarter
Jan-Sep Car Production
‘000 Units
- 2.0%
yoy
Source: The Federation of Thai Industry (Automotive Industry)
- 7.5%
yoy
Thailand Export Volume
AAPICO HITECH PUBLIC COMPANY LIMITED
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Export Volume by Quarter
Jan-Sep Export Volume
859 821 9M18 9M19
- 4.4%
yoy 267 297 282 300 260 261
- 100
200 300 400
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Export Volume
‘000 Units
Source: The Federation of Thai Industry (Automotive Industry)
- 12.0%
yoy
361 370 291 306 95 87
747 762 9M18 9M19
Thailand Domestic Car Sales Volume
AAPICO HITECH PUBLIC COMPANY LIMITED
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Domestic Car Sales by Quarter
Jan-Sep Domestic Sales
119 123 151 133 126 111 100 101 109 103 104 99 33 34 35 28 31 28
252 257 295 264 260 238
- 100
200 300 400
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1-Ton Pick-Up/PPV Passenger cars Other vehicles
‘000 Units
+2.0% yoy
Source: The Federation of Thai Industry (Automotive Industry)
- 7.5%
yoy
Thailand Total Industry Volume Jan-Sep
16
Source: Toyota
Malaysia Total Industry Volume Jan-Sep
17
Source: MAA
Financial Performance
3Q 2019
Financial Highlights
AAPICO HITECH PUBLIC COMPANY LIMITED
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- Revenue increased due to higher sales from the automotive
parts segment and gain on changes in interests in investments in associate and joint venture. Interest income on the other hand has decreased due to the fact that the company has stopped recognizing interest income on the loan to SGAH, since Q2 2019 for conservative reasons.
- Gross profit increased due to improved efficiency and cost
reduction and profit from tooling sales.
- SG&A increased due to professional fee and unrealized loss
- n F/X .
- Profit sharing from associates and JV decreased due to lower
profit sharing from HMTH and higher loss sharing from SGAH.
- Interest and Tax expenses increased due to the completion of
BOI tax incentive scheme of some subsidiaries of the group and increase of loan level.
- Net Profit decreased mainly due to higher loss sharing from
SGAH.
3Q 2019 Key Financials
Q3 Q3 2018 2019 Total Revenue 4,416 4,603
Sales and service income 4,179 4,318 Gains on changes in interests in investments in associate and joint venture
- 151
Other Income 151 134 Interest Income 86
- Gross Profit
283 383
Gross Profit (%) 6.8% 8.9%
SG&A 216 255
EBIT 305 413
Share of Profit 62 (92)
Interest Expenses (44) (72) Income Tax Expenses (0.1) (44)
Net Profit 302 204
NP Margin (%) 6.8% 4.4%
D/E (x) 0.62 0.77 P&L
4,283 4,416 4,576 4,479 4,759 4,603 3,000 3,500 4,000 4,500 5,000 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Sale Interest Income
- ne-time gains
Other Income
AH Group : Revenue
AAPICO HITECH PUBLIC COMPANY LIMITED
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THB million
13,161 13,840 9M 2018 9M 2019
Jan – Sep Revenue Revenue by quarter
Auto Parts 66% Car Dealerships 29% IOT Connectivity 0% Other
5%
9M 2019
- 3Q 2019 Revenue grew 4.2% YOY, primarily driven by higher
sales from the automotive parts segment in Thailand and tooling sales from overseas customers and gains on changes in interests in investments in associate and joint venture.
- On the other hand, interest income has decreased by stopped
recognizing interest income on the loan to SGAH for conservative reasons.
+5.2% yoy
+4.2%
yoy
AH Group : Gross Profit
AAPICO HITECH PUBLIC COMPANY LIMITED
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THB million 260
284 423 375 356 383 6.5% 6.8% 9.9% 8.9% 7.7% 8.9% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
- 50
100 150 200 250 300 350 400 450 852 1,114 6.8% 8.5% 9M 2018 9M 2019
Jan – Sep Revenue Gross Profit by quarter
- 3Q 2019 Gross Profit increased 34.9% YOY in terms of amount and Gross Profit Margin grew to
8.9%, attributable to higher sale from automotive parts, improved efficiency and increases of gross profit from tooling sales.
+30.7% yoy
+34.9%
yoy
- 3Q 2019 sales grew by 15.8% YOY, driven by growth in automotive parts
segments in Thailand and tooling sales from overseas customers.
- EBIT margin increased mainly attributable to higher sale from automotive
parts, improved efficiency and increases of gross profit from tooling sales.
AAPICO HITECH PUBLIC COMPANY LIMITED
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2,473 2,582 2,901 2,995 3,128 2,991
9.6% 7.3% 10.9% 9.2% 5.1% 8.5%
- 1,000
2,000 3,000 4,000 5,000 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Thailand China EBIT%
THB million 7,740 9,114
8.2% 7.6%
9M 2018 9M 2019
Jan – Sep Sales & EBIT Sales and EBIT by quarter
Isuzu 30% Vinfast 18%
AAT 10% Nissan 5% AAM; 4% FORD; 3% DANA; 3% TOYOTA 2% Others- Parts 25%
9M 2019
+17.8% yoy
Auto Parts
+15.8%
yoy
Car Dealers
AAPICO HITECH PUBLIC COMPANY LIMITED
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1,528 1,587 1,388 1,233 1,484 1,321 1.5% 1.5% 1.5% 1.5% 0.3% 0.8%
- 1,000
2,000 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Thailand Malaysia EBIT% 4,693 4,038 1.4% 0.8% 9M 2018 9M 2019
Ford 11% Mitsubishi 24% Honda 61% Proton 4%
9M 2019
THB million
Jan – Sep Sales & EBIT Sales and EBIT by quarter
- 14.0%
yoy
- 3Q 2019 Sales declined by 16.8% year on year, due to a
decrease in Honda’s sale volume in Malaysia. EBIT margin dropped YoY from 1.5% to 0.8% of sales.
- 16.8%
yoy
AH Group : EBIT & EBITDA Margin
AAPICO HITECH PUBLIC COMPANY LIMITED
24 451 339 396 461 512 468 560 517 301 564
- 200
400 600 800 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 EBIT Depreciation 1,441 1,383 9M 2018 9M 2019 7.5% 4.3% 5.5% 6.7% 8.0% 6.9% 10.0% 8.2% 3.4% 9.0% 11.6% 7.9% 8.8% 10.3% 11.9% 10.6% 12.2% 11.5% 6.3% 12.3% 0% 5% 10% 15% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Unit: as % of revenue
EBIT% EBITDA% 7.2% 6.8% 10.9% 10.0%
9M 2018 9M 2019 EBIT% EBITDA% THB million
- 4.0%
yoy *Excluded Share of profit (loss) from investments in associates and JV
AH Group : Net Profit
25 305 302 295 216 140 204
(200) (100)
- 100
200 300 400 500 600 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 THB Million
Profit to equity holders from operations Associate income 1,004 561
9M 2018 9M 2019
Operations Associate 7.1% 6.8% 6.4% 4.8% 2.9% 4.4%
0% 5% 10% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Unit: as % of revenue
Net Profit % 7.6% 4.1%
9M 2018 9M 2019
Net Profit %
- 44.1%
yoy
AAPICO HITECH PUBLIC COMPANY LIMITED
AH Group : Financial Indicator
26 18.9% 19.8% 17.7% 14.4% 12.4% 11.0%
0% 10% 20% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Return on Equity (ROE)
ROE (In the Quarter) ROE (Seasonally adjusted)
9.0% 9.2% 8.2% 6.8% 5.7% 5.0%
0% 5% 10% 15% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Return on Asset (ROA)
ROA (In the Quarter) ROA (Seasonally adjusted)
8.5 8.8 7.7 6.5 5.4 4.6
0.0 4.0 8.0 12.0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Interest Coverage Ratio (ICR)
ICR (In the Quarter) ICR (Seasonally adjusted)
2.9 2.7 2.8 2.7 3.0 2.9
0.0 2.0 4.0 6.0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Debt to EBITDA
Debt/EBITDA (In the Quarter) Debt/EBITDA (Seasonally adjusted) AAPICO HITECH PUBLIC COMPANY LIMITED
AH Group : Net gearing
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- Net interest-bearing debt to equity ratio as of September 2019 was
0.77x, compared to 0.62x as of September 2018, and was within the Company’s target of less than 1.00x.
- Total liabilities net cash (Net debt) to equity ratio as end of September
2019 was 1.15x, which was still within the financial covenant target of less than 2.00x.
ST Loan 5% CPLTD 19% LT Loan 37% LT Bond 39%
Interest-bearing Debt
Interest-bearing debts as
- f September 2019 was
THB 6.4 Billion, mainly used for investment and new project.
0.40 0.69 0.60 0.56 0.62 0.80 0.80 0.83 0.77 0.74 0.99 0.92 0.91 1.01 1.18 1.21 1.22 1.15
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.0 2.0 4.0 6.0 8.0 10.0 2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Unit: in THB Billion
Debts Equity D/E (L-C)/E
AAPICO HITECH PUBLIC COMPANY LIMITED
Strategy & Direction
Thailand Automotive Outlook in 2019
AAPICO HITECH PUBLIC COMPANY LIMITED
29 0.46 0.58 0.75 0.93 1.13 1.19 1.29 1.39 1.00 1.65 1.46 2.45 2.46 1.88 1.91 1.94 1.99 2.17 2.00
- 0.5
1.0 1.5 2.0 2.5 3.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 …. Production Forecast Domestic Export
Unit: Million
Global Financial Crisis Flood First car campaign
Source: The Federation of Thai Industry (Automotive Industry)
Thailand automotive industry expects production volume to be at 2 million cars, of which 1 million cars to be sold locally and 1 million cars for export.
- 7.8%
Sample of automotive parts sales orders for current and new models
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100 200 300 400 500 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28
Global Financial Crisis Flood First car campaign
Unit: in thousand Previous model Current model New model
Stable sales volume with steady growth
28 August 2019
Continued orders going forward
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Confirmed orders – 5 years for cars and 10-12 years for pick-up truck
ISUZU
D-Max Mu-X
Nissan
Navara Terra
TOYOTA
Hilux Revo Fortuner
FORD
Ranger Rapter Everest
Mitsubishi
Triton Pajero Sport
Honda
City Brio HRV BRV
Toyota
HRV Camry Altis Vios Yaris
Mazda
Mazda 2 CX3 BT-50 PRO
Nissan
Teana Almera Syphy Note March
FORD
Fiesta Focus Eco Sport
Indonesia #16 Thailand #11 France #10 Spain #9 Brazil #8 S.Korea #7 Mexico #6 Germany #5 India #4 Japan #3 USA #2 China #1 Unit : Millions 2018 2017
Global Business Opportunities
AAPICO HITECH PUBLIC COMPANY LIMITED
32 China 29% Japan 10% India 6%
Thailand 2%
Rest of Asia 8%
Europe 22% America 22% Africa 1%
2018
Source: OICA
Top 10 Motor Vehicle Production Country in 2018
2018 Global Production Volume was 96 million units Major OEM Brands in Thailand Thailand Volume 2 Million
Business Strategy
AAPICO HITECH PUBLIC COMPANY LIMITED
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CHINA INDIA EUROPE USA JAPAN THAILAND MALAYSIA
Key Milestones
AAPICO HITECH PUBLIC COMPANY LIMITED
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Taking steps toward globalization
2017-2018
- Established
strategic global partnership with Sakthi Group and invested US$100 million for 25.1% stake in Sakthi Global Auto Holding Limited (SGAH).
- Increased equity
holding in SGAH from 25.10% to 49.99% with total investment of US$65 million
2013-2016 2008-2012 2005-2007 2002-2004
- Listed on SET.
- Acquired a chassis
frame factory from Dana Corporation.
- Expanded to
China.
- Established
strategic global partnership with Sojitz Corp.
- Established JV with
Mitsuike Corp.
- Acquired forging
business from KPN.
- Established JV with
Minth Corporation.
- Established JV with
Takagi Seiko.
- Completed
construction of 3S showroom in Malaysia.
- New factory in
Kunshan (China) started operation.
- Established JV with;
- Lemtech
(Taiwan)
- Edscha
(Germany)
- Sumino (Japan)
- Sodecia
(Portugal)
- Explored
- pportunity in the
start-up business.
- Established AAPICO
Training Center.
- Issued bond with a
BBB+ credit rating.
- Achieved 4-star CG
rating.
2019
- Established
Proton Dealership in Malaysia (49%)
- Appropriated
50.01% shares of
- SGAH. The
Company now holds 100% of SGAH shares
Global Footprints
AAPICO HITECH PUBLIC COMPANY LIMITED
35 Detroit, USA Durango, México Coimbatore/Erode, India Rushan, China Porto, Portugal Thailand Malaysia Singapore Kunshan, China London, UK AAPICO Facilities Other JV partners
Japan Taiwan Germany
New York, USA
AAPICO HITECH PUBLIC COMPANY LIMITED
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Significant matters in Q3 2019
SGAH Group AAPICO ceased recognizing interest income on loan given to SGAH Hyundai Motor (Thailand) The Company sold 10% shareholding in Hyundai Motor (Thailand). As a result, the shareholding decreased from 30% to 20% Aapico Vinfast Auto Parts Company Limited (AVAP) The Company sold 51% shareholding in AVAP to Vinfast Trading and Production Limited Liability Company
AAPICO HITECH PUBLIC COMPANY LIMITED
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SGAH Group
- Appropriated 50.01% shares in SGAH:
In October 2019, the Company completed the process of appropriating the remaining 50.01% shareholding held by ABT Auto Investment Limited in SGAH, resulting in an increase in Company’s shareholding in SGAH from 49.99% to 100%.
- Acquired Sakthi Portugal S.A. (Portugal) shares:
In November 2019, the Company acquired 100% shares of Sakthi Portugal S.A. (Portugal) and two subsidiaries, namely Sakthi Portugal SP21, S.A. (Portugal) and Sakthi Portugal GmbH (Germany). Subsidiary
- Purchase of assets of the car dealership business of Able Motors Co., Ltd. The
transaction value does not exceed Baht 370 million.
Events after Q3 2019
Key focus points
AAPICO HITECH PUBLIC COMPANY LIMITED
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