Ama Marine Rises 10% as Expansion of Fleets to Boost 2023 Earnings to THB307 Million

At the end of the afternoon session on Friday, the share price of Ama Marine Public Company Limited (mai: AMA) grew by 10.36% or THB 0.46 to THB 4.90 per share, with a trading value of THB 39.92 million.

Earlier, Mr. Pisan Ratchakitprakarn, Managing Director of AMA, stated that the company targeted double-digit revenue growth in 2024, following the recovery of the logistics business and the expansion of vessels and trucks fleet. At the present date, the company possessed more than 500 tank trucks, separating into 304 of the company’s and around 200 of TSSK Logistics Company Limited (TSSK), of which AMA had recently acquired 76% of the shareholding. AMA also possessed nine vessels with a total capacity of 96,420 deadweight tons (DWT).

KGI Securities (Thailand) gave a “BUY” recommendation for AMA at a target price of THB 6.40, which was adjusted from the previous THB 5.70. The adjusted price was a result of the recognition by the company of more income from its shipping business compared to the 10 times P/E, as the company started operating a new second-handed ship with a capacity of 12,999 DWT and running 40 new trucks for commercial transportation in 4Q23 during the high season in Thailand.

Moreover, the company also revised its estimated profit for 2023 up by 22% to THB 307 million and by 16% to THB 330 million in 2024, as the gross profit margin for the marine transportation business edged higher. The 8% decline in crude oil prices from Dubai in December 2023 compared to the previous month helped lower the cost for the business, which led to the adjustment of the gross profit margin for the AMA shipping business in 2023 from 17% to 20% and to 22% in 2024. AMA also revised up its revenue for marine and land transportation businesses in 2023-2024.