Thai Stanley Electric Public Company Limited, or STANLY, reported a net profit of 362 million baht for the first quarter of its fiscal year 2569/2570, down 2% from the same period last year and down 19% from the previous quarter. This was close to the research team's estimate of 364 million baht but about 5% below market expectations. Excluding a foreign exchange gain of 23 million baht, core profit was 338 million baht, down 11% year-on-year and 24% quarter-on-quarter, reflecting pressure from the still-sluggish automotive industry. Sales revenue was 2.65 billion baht, down 9% year-on-year and 10% quarter-on-quarter, as major customer Honda cut production and orders amid intense competition from Chinese electric vehicles, coupled with the low season having fewer working days. Despite the revenue decline, the company maintained a solid gross margin of 22.9%, up from 20.9% a year earlier, thanks to improved production efficiency and strict cost control. The research team estimates that first-quarter net profit accounts for about 18% of the full-year profit forecast of 1.97 billion baht, which is expected to grow only 2% from last year. It maintains a Neutral recommendation with a target price of 230 baht, viewing the stock as still suitable for dividend-focused investors, while an earnings recovery still hinges on a broader rebound in the automotive industry.
Thai Stanley Electric Public Company LimitedNet profit down 2% YoY and 19% QoQ, missing market expectations, with core profit down 11% YoY.
Honda Motor Co., Ltd.Honda cut production and orders due to intense competition from Chinese EVs, impacting STANLY's revenue.