Yuanta Securities (Thailand) recommends buying shares of Millennium Group Corporation (Asia) Public Company Limited, or MGC, with a target price of 20.20 baht. It expects normal profit for the third quarter of 69 to come in at 300-350 million baht, up about 30% from the same period a year earlier but slightly lower than the previous quarter, even though this is the low season, supported by deliveries of the XPENG X9 and revenue from the World Bank shuttle service. For the fourth quarter of 69, the research team expects MGC's operating results to potentially hit a new high, with profit of about 500 million baht, driven by the high season, the start of XPENG LO3 deliveries, and revenue from the World Bank shuttle service. It sees second-half profit trends as stronger than previously expected, while concerns over the XPENG tax are likely to be limited if the cars qualify for Tier 2 as expected. Yuanta's research team expects that in 2570 MGC's performance will continue to grow on the back of XPENG expanding to 4-5 models, branch expansion, and the humanoid business, which could be a new S-Curve further out. It also sees a chance for MGC shares to re-rate and recover quickly once the structure of car import taxes becomes clear. MGC shares closed the midday session at 6.65 baht, up 0.15 baht, or 2.31%, with trading value of 13.19 million baht.
Millennium Grp Corp (Asia)Yuanta rates MGC a Buy with a 20.20 baht target price, expecting record Q4/69 profit of about 500 million baht.
