The Cabinet of Thailand had recently approved subsidies for electric vehicle buyers in the meeting on Tuesday to boost the usage of clean energy and achieve carbon neutrality.
Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), wrote in an analysis earlier this morning before the approval of the Thai cabinet on EV subsidies, stating that the incentive package will lead to a demand boom for EVs in Thailand as the government is leading toward fully EV by 2030.
The MD stated that he believed the incentive package will lead to a demand boom for EVs in Thailand, particularly for imported passenger EVs from China and Europe, thanks to potential price cuts by up to 20-40%.
Moreover, with an expected 28% drop in the battery cost by 2026, ARK Investment (ARK) forecasts the price of EVs to drop markedly in 2021-26.
Among EV-related players in Thailand, Mr. Sinsadok stated that Energy Absolute Public Company Limited (SET: EA) (Target Price THB122) and Nex Points Public Company Limited (SET: NEX) (Target Price THB26) – Thailand’s two leading players in the battery and EV businesses – will see their share prices outperform in 2022, thanks to the strong net profit growth momentum that we project in 2021-23 due to their fully integrated, first-mover advantage over competitors that has allowed them to timely capture regulatory benefits ahead of the booming demand for EVs expected in 2022 onward.
As of 16:00 local time in Thailand, the share price of EA rose Bt4.00 or 4.37% to trade at Bt95.50 per share. Meanwhile, NEX rose Bt1.40 or 7.78% to trade at Bt19.40 per share.