The share price of Energy Absolute Public Company Limited (SET: EA) rose THB4.50/share or 5.01% to THB94.2/share as of 15.23 hrs. local time in Thailand, with a trading value of THB2,467 million.
EA announced on Friday that its subsidiary E Transport Holding (ETH) has acquired 99.99 percent of Smart Bus Co., Ltd. (SMB) from Gekko Holding Co., Ltd. (the major shareholder holding 99.99% in SMB) and other minor shareholders. As a result, ETH is a major shareholder, holding SMB shares of 9,999,998 shares at par value of Baht 100 per share, or 99.99% of total shares.
According to Phillip Securities (Thailand), EA aims to deliver 1,500 E-Bus this year (up from 117 in 2021), and while the company now has 500 car orders, the remainder will come from marketing plans at the end of 1Q22.
The earnings outlook is still solid this year. Profitability of the renewable power market is predicted to improve marginally, while biodiesel still would remain flat due to the current geopolitical tensions. Therefore, the EV sector will be a key driver in supporting the company’s profitability this year.
GPM of EV would be 28% in 2022 and 30% in 2023. This will result in EA’s revenue increasing by 26% in 2022 and 7% in 2023, despite a decline in EBITDA margins from 50% in 2021 to 47% in 2022 and 46% in 2023. Overall, EA is projected to raise its profit by 30% this year.