King Gen PCL

Global Securities, or GBS, says King Gen Public Company Limited, or KGEN, is entering a turnaround phase, raising its stake in Omoda & Jaecoo Manufacturing (Thailand) Company Limited, which operates the electric vehicle plants for the OMODA JAECOO and CHERY brands, from the current 43.7% to 51% in early July, and then to 60% in late July to early August. This will shift revenue recognition from the share of profit of an associate to full consolidation of both revenue and profit. Management expects that after the stake increase, revenue will grow significantly year on year to 25 billion baht, with a net profit margin of 2.5-3.0%, or roughly 600-700 million baht. Previously, KGEN reported second-quarter 2026 profit of 37 million baht, up 171% quarter on quarter and 152% year on year, after losses in the first quarter of 2026 and the second quarter of 2025. The main driver was the share of profit from its investment in that associate, whose production line began operating on 20 April 2026, while revenue from sales and services grew to 227 million baht, up 8% quarter on quarter and 36% year on year. Bookings for JAECOO and OMODA electric vehicles at the Big Motor Sale 2026, held from 21-30 August 2026, totaled 5,028 units, with deliveries scheduled for September to October 2026, an additional factor supporting revenue and profit growth. The current share price still cannot be assigned a P/E ratio because the company has posted continuous losses from 2022 through the first six months of 2026, though earnings are expected to turn around from 2026 onward. The stock trades at a P/BV ratio of 2.58 times, above its one-year, two-year and three-year averages of 2.56, 2.30 and 2.10 times respectively.

Kanit Srivachiraprapha, Chairman of the Advisory Board of King Gen Public Company Limited, or KGEN, disclosed that the company's third-quarter 2026 operating results are clearly improving over the second quarter of 2026, driven by higher car sales and by the Omoda & Jaecoo Manufacturing (Thailand) Company Limited, or OJMT, vehicle assembly plant, which has continued to expand production capacity, pushing profit margins higher. Cumulative output at the plant has now passed the 20,000-vehicle mark, and it is currently producing more than 4,000 vehicles a month. The company plans to hold a shareholders' meeting to raise 252 million baht in capital for Rayong Wire Industries Public Company Limited, or RWI, on 22 October, with the funds expected between 26 October 2026, and will use the money to increase its stake in the OJMT plant from 51% to 60%. As a result, in the fourth quarter of 2026 KGEN will fully consolidate the plant's sales and operating results into its financial statements, driving total revenue growth to jump sharply. This year output is expected at around 40,000 vehicles, while for 2027 the target is to run at full capacity of 80,000 vehicles a year. Most recently, the company launched the iCAUR V27 REEV, a hybrid model with a maximum driving range of 1,000 kilometres, starting at just 999,900 baht, with deliveries beginning on 1 October. It has drawn more than 3,000 bookings at the Big Motor Sale event.

King Gen Public Company Limited, or KGEN, is pushing ahead with a major strategic shift into an EV ecosystem, spearheaded by the OMODA & JAECOO electric vehicle assembly plant, or OJMT, and is preparing to add the commercial electric vehicle brand FARIZON as a new S-Curve. The OJMT plant will begin full commercial production in 2026, and is currently ramping up capacity by adding a second shift, lifting output from roughly 5,000 vehicles per month to about 8,000 vehicles per month, an increase of approximately 60%. Trinity Securities estimates OJMT sales of about 40,000 vehicles in 2026, rising to 50,000 in 2027 and 60,000 thereafter. FARIZON, meanwhile, targets sales of about 2,000 vehicles in 2026, rising to 3,000 and then 4,000 thereafter. For the second half of 2026, the company targets electric vehicle sales of about 20,000 units through the JAECOO, OMODA, LEPAS and CHERY brands, at an average price of about 500,000 to 700,000 baht per vehicle, supported by a network of more than 200 partner showrooms. On the transport side, Montri Transport has a backlog of nearly 1,000 vehicles from private-sector B2B customers, worth a combined total of more than 1 billion baht. Trinity expects KGEN to stage a clear turnaround in 2026, with revenue rising to 24.96 billion baht from 718 million baht in 2025, before climbing to 33.06 billion baht in 2027, or growth of about 32% year on year, and net profit swinging from a loss of 136 million baht in 2025 to a profit of 504 million baht in 2026 and 692 million baht in 2027, or growth of about 37% year on year. It also sets a 2026 fair value of 2.90 baht, based on a price-to-earnings ratio of 12 times and 2026 earnings per share of 0.24 baht, and if all warrants are exercised and dilution occurs, the fair value would be 2.38 baht.

King Gen Public Company Limited, or KGEN, disclosed that Rayong Wire Industries Public Company Limited, or RWI, has taken a stake in KGEN through a private placement subscription of newly issued ordinary shares worth no more than 250 million baht, at a price of no more than 1.35 baht per share, representing approximately 7.68% of the shares after the capital increase, with total investment of no more than 252 million baht. RWI will also receive the right to subscribe to KGEN-W3 warrants in proportion to its existing shareholding, worth no more than 2 million baht. The maximum transaction size of 24.67% qualifies as a Type 3 transaction, which requires approval from a shareholders' meeting by a vote of no less than three-quarters. An extraordinary shareholders' meeting, the first of 2026, has been scheduled for Thursday, October 22, 2026. Khanit Sivachiraprapha, Chairman of the Advisory Board of KGEN, said the partnership will strengthen the domestic supply chain for automotive parts production, in line with the policy of increasing the use of locally made parts in electric vehicle production under cooperation with the CHERY brand. RWI specialises in the production of cold-drawn steel, which is used to make automotive parts. KGEN has so far produced 20,000 vehicles, with EV production capacity of approximately 5,000 vehicles per month, and expects capacity to rise by another 15,000 to 20,000 vehicles in the final three months of the year, bringing total production for the year to around 40,000 vehicles. Year-end bookings are expected to accelerate on the back of the Motor Expo in December, where two to three new electric vehicle models will be unveiled. The company has also signed an agreement to support a transport fleet for J&T Express, including the use of electric pickup trucks for deliveries of no more than 400 kilometres.

The new National Electric Vehicle Policy Committee, or EV Board, at its first meeting approved in principle a restructuring of the car excise tax into three tiers, covering battery electric vehicles, REEV electric vehicles, hybrid cars and plug-in hybrids. Tier 1 carries the lowest rate for cars produced domestically and using domestic parts, Tier 2 a middle rate for imported cars with clear plans to invest in building factories in Thailand, and Tier 3 the highest rate for commercially sold imported cars with no investment plans. The Excise Department will speed up finalising the tax rate for each tier and submit it to the Cabinet for consideration as soon as possible. Meanwhile, Khanisorn Srivachiraprapha, chairman of the advisory board of King Gen Public Company Limited, or KGEN, said EV car orders grew 50% from the same period last year, with cumulative sales of about 10,000 units since the Big Motor Sale event, and deliveries to customers are being gradually made. The new excise tax rate may rise to about 30% and is expected to take effect around the end of this year, prompting consumers to speed up their purchasing decisions to avoid possibly higher costs. KGEN also plans to announce the price of its V27 model within this month, along with plans to launch additional new models at the Motor Expo at the end of the year, and is in the process of bidding to supply vehicles to one of the country's leading large logistics businesses, which it is highly confident of winning.

King Gen Public Company Limited (KGEN) announced that in August 2026, registrations of Chery-branded BEVs, which are jointly developed with KGEN, totaled 4,236 units across three models: JAECOO 5 EV, CHERY V23, and JAECOO 6 EV. This represents a market share of 19.18% of the total BEV market, which saw 22,088 registrations. The JAECOO 5 EV was the top model with 2,656 registrations, accounting for 12.02% of the BEV market. Mr. Kanis Sriwachiraprapa, Chairman of KGEN's Advisory Board, stated that the company has increased production capacity to 8,000 units per month by adding a second shift of 3,000 units to accommodate rising orders. The company targets sales of 20,000 units in the second half of the year, with key brands including JAECOO, OMODA, LEPAS, and CHERY, priced between 500,000 and 700,000 baht per unit to penetrate the mass market.

OMODA & JAECOO (Thailand) secured 5,028 bookings at the Big Motor Sale 2026 within 10 days, making King Gen Public Company Limited (KGEN) the top seller with over 10,000 total car bookings. The event, held from August 21–30, 2026, saw total bookings of 11,165 cars. The JAECOO 5 EV, a 100% electric vehicle, was the most popular model, accounting for 53% of all bookings, followed by the JAECOO 6T REEV at 28%. Customers have also started pre-booking the iCar despite its price not yet being announced. Combined with approximately 22,000 bookings from the Motor Show earlier this year, cumulative bookings remain strong. The factory has a production capacity of over 5,000 cars per month and is preparing to deliver around 20,000 cars in the final four months of the year, with production increased to two shifts to support a maximum annual capacity of 80,000–100,000 cars.

King Gen Public Company Limited (KGEN) announced that cumulative reservations for the JAECOO 5 electric vehicle have exceeded 10,000 units as of the end of Q2 2026, with delivery expected to be completed within Q4 2026. The company plans to launch three new electric vehicle models in the remainder of this year to target the freight, passenger, and taxi markets. It also aims to expand production capacity to 8,000 units per month in 2027, up from the current 5,000 units per month, and plans to expand its parts warehouse to address past parts shortages.

King Gen Public Company Limited, or KGEN, swung to a net profit of 36.98 million baht in the second quarter of fiscal 2026, from a loss of 71.50 million baht a year earlier, a recovery of 151.72%. Total revenue was 227.59 million baht, up 35.94% from 167.42 million baht, supported by the commercial electric vehicle business, which began recognizing revenue of 89.86 million baht after the OJMT plant started production on 20 April 2026. For the second half, the company expects continued improvement, especially in the B2B segment under the FARIZON brand, which has a backlog of thousands of vehicles awaiting delivery, a significant increase from the first half when only dozens were delivered. Corporate customers such as Big C and Krating Daeng have already placed orders.

KGEN, a shareholder in the Chery group's car manufacturing plant, revealed that the policy to raise excise tax on imported electric vehicles to 30 to 50 percent, set to be proposed to the cabinet by September 2026, will not affect the Chery group and will be positive for groups with manufacturing plants in Thailand. However, it will impact imported EV brands from China that lack local factories, making their cars more expensive. Mr. Kanis Sriwachiraprapha, Chairman of the Advisory Board at KGEN, stated that the Chery assembly plant in Rayong province is located in a tax-free zone and uses at least 40 percent local parts, thus meeting advantageous conditions. Meanwhile, imports of certain Chery models are also unaffected because production offsets the number of imported units. Krungsri Securities has assigned a negative weighting to the automotive sector due to this tax review, noting that Thai parts manufacturers are not yet benefiting in the short term. Chinese EV dealers like MGC, which distributes XPENG and ZEEKR and has no production base in Thailand, face direct downside risk, with MGC's share price dropping sharply by 17 percent.

The government is considering restructuring excise tax rates for electric vehicles, with a plan to impose higher taxes on imported EVs that lack a manufacturing base in Thailand. Meanwhile, operators that set up factories and use domestic production networks will receive greater benefits. The proposal is expected to be submitted to the cabinet within September. Analysts from Yuanta Securities Thailand noted that this issue negatively affects MGC and ASAP stocks, which import EVs for sale, but is positive for KGEN, as it has a production base in Thailand and directly holds shares in domestic factories. Parts manufacturers have proposed increasing the tax differential between imported and domestically produced EVs to at least 30 to 50 percent, up from the current roughly 8 percent. This would enhance the advantage of domestically produced vehicles and encourage EV makers to use local supply chains more, benefiting Thai parts makers such as AH, SAT, STANLY, and EPG. SAT is highlighted as a top pick with a buy recommendation and a target price of 18.80 baht per share.

KGEN has set a total vehicle production target across all brands for 2026 at 40,000 units and expects its performance to rebound and return to growth, while signaling good news to shareholders. The company recently officially launched the LEPAS L6 EV, a premium electric SUV under Chery Group, in Thailand, with a starting price of 769,900 baht and a sales target of no less than 4,000 units in the second half of 2026. Mr. Kanis Sriwachiraprapha, Chairman of the Advisory Board at KGEN, revealed that if the 2026 operating results go according to plan, the company has a policy to consider paying dividends in 2027. In addition, KGEN plans to launch at least two more new brands this year, especially in the luxury vehicle segment, and is in talks with Huawei to introduce another brand at the year-end motor expo.