Bualuang Securities has closed its tactical BUY calls on King Gen Public Company Limited (mai: KGEN) and Millennium Group Corporation (Asia) Public Company Limited (SET: MGC) after both stocks delivered robust gains, with returns of 20-30% in just 11 trading days, outpacing the SET index which declined by 2%. KGEN hit the initial target price of THB 2.2 by June 22, while MGC nearly reached THB 8, trading at THB 7.6 on June 17. The increased trading value in both stocks reflects growing investor interest in Thailand’s electric vehicle (EV) sector.
Despite booking profits on these tactical positions, Bualuang Securities emphasizes that Thailand’s EV industry continues to be structurally sound, bolstered by supportive government policies.
For MGC, the outlook remains positive. Following a strong first quarter, the firm expects MGC’s earnings momentum to persist through the second quarter, possibly maintaining a sixfold year-on-year increase. With the upcoming launch of BMW’s Neue Klasse model and the IMF-World Bank Group Annual Meetings in Bangkok in October, MGC could see additional fleet sales opportunities, echoing its success as the APEC 2022 mobility partner. Bualuang maintains a THB 8 target price based on an estimated 2026 core profit of THB 900m-1bn and a tactical PER of 10x, with a stop loss at THB 6.50.
KGEN also appears poised for further gains. Anticipated new government EV incentives, part of a THB 200bn energy-transition package, could further stimulate the sector. KGEN’s future growth is also underpinned by new brand partnerships. Chery launched its Chery Q in Thailand today, already securing over 3,000 pre-orders. Farizon’s expected expansion in commercial EVs, supported by potential fleet orders, is set to drive additional revenue. If KGEN achieves THB 22bn factory revenue and THB 2bn from Farizon at a 2% net margin, earnings could reach THB 400m. Using a 15x PER, the share valuation aligns with a THB 2.7 target price, with a stop loss set at THB 2.0.
Bualuang’s analysis highlights that while short-term trades have concluded, the long-term prospects for Thailand’s EV market remain bright amid ongoing industry transformation.
