Asia Plus Securities wrote that Millennium Group Corporation (Asia) Public Company Limited (SET: MGC) is currently diversifying its sources of revenue by expanding beyond its traditional roles as a premium automotive dealer, after-sales service provider, and car rental operator (SIXT), to include distribution activities for XPENG and ZEEKR beginning in 2024. These new business lines offer higher margins compared to the company’s traditional dealership business.
MGC’s extensive experience in the automotive sector has supported significant growth in XPENG vehicle registrations in Thailand, with cumulative registrations reaching 178 vehicles by the end of 2024, increasing to 2,959 vehicles by the end of 2025, and further rising to 4,635 vehicles as of the end of April 2026. This progression reflects the ongoing scale-up of the new business ventures.
The company’s normalized profit exhibited a strong growth to THB 683 million in 2025, up from THB 146 million in 2024. For the first quarter of 2026, the profit reached THB 283 million, a marked recovery compared to THB 55 million in 1Q25, driven by both higher sales volumes and better margins.
In the first quarter of 2026, vehicle sales revenue was recorded at approximately THB 4.6 billion, a 73% year-on-year increase. Of this, XPENG accounted for 40%, while ZEEKR contributed 11%, signaling that the new business model is beginning to make a significant impact.
Meanwhile, cash flow from operations after deducting CAPEX and lease expenses was THB 914 million in the first quarter of 2026, up from THB 450 million in the same period last year, in line with improved profitability.
The high-margin distribution business has driven the operating profit margin from 1.9% in 2024 to 4.4% in 2025, with further acceleration to 7% in the first quarter of 2026. This presents an opportunity for a potential re-rating of the company’s valuation if the improvements are sustained.
In addition, the car rental segment, which accounts for 8% of total revenue, is expected to receive a significant boost in the fourth quarter of 2026 when Thailand hosts the 2026 IMF–World Bank Group Annual Meetings. MGC anticipates servicing approximately 1,000 vehicles for event participants, surpassing the 600 vehicles supplied during Thailand’s hosting of the APEC meeting in 2022.
Asia Plus estimates a 39% increase in normalized profit for 2026, rising to THB 950 million. Profit for 1Q26 already represents 30% of the full-year estimate, compared to 1Q25’s contribution of 8% to 2025 profits, suggesting a more conservative projection than the company’s target of THB 969 million. This forecast is based on a 25% rise in revenue and an operating profit margin of 5%.
Despite a rebound in the stock price from approximately THB 2.60 to above THB 5.00, MGC’s share price remains below the IPO price of THB 7.95, even though profits have outpaced those at the time of the IPO (THB 603 million in 2022).
Based on a price-to-earnings ratio (PER) of 8.5x, the valuation reflects cautious sentiment regarding competition in the EV market, resulting in a fair value (FV) estimate of THB 7.20 per share.
Following these, a ‘Buy’ recommendation is given by the brokerage, supported by positive earnings momentum and improved margin quality. Meanwhile, the stock continues to trade at 6.5x PER, mainly reflecting its legacy as a traditional automotive dealer rather than as a diversified distributor.
