AH expects H2 turnaround

       Aapico Hitech Plc (AH), a manufacturer of auto parts and pickup truck frames,expects second-half revenue to rise by 30% to 40% from the first half as the domestic and global auto market improves.
       The auto industry is expected to fully recover in 2010, with sales of 1.2 million forecast for next year compared with fewer than 1 million this year, said Yeap Swee Chuan, the AH president and chief executive.
       The launch of fuel-efficient "eco-cars"and new sub-compact "B" cars will help drive growth next year, he told investors at a briefing at the Stock Exchange of Thailand yesterday.
       Domestic sales, meanwhile, have shown signs of recovery, with sales up to 30,000 units in June from a low of 10,000 in March.
       In any case, AH expects full-year 2009 revenue to be from 25% to 30% less than the 9.53 billion baht reported last year,due to the plunge in sales in the first half of the year. Growth is expected to rebound to between 15% to 20% in 2010.
       AH reported first-half revenue of 3 billion baht, down from 4.78 billion in the same period last year. Second-quarter revenue fell to 1.54 billion baht from 2.46 billion last year.
       The company posted a first-half loss of 109.9 million baht, compared with profit of 249.4 million last year. Secondquarter losses totalled 39 million baht,compared with profit of 107.26 million in the same period last year.
       The launch of Nissan's new eco-car in 2010 will help boost AH sales, said Mr Yeap. Nissan currently provides 5% of the company's revenue.
       "Six or seven years ago, we did not have Isuzu as a client. It is now our biggest customer, at 34% of revenues,"he said.
       "Three years ago, we had no Nissan.But it soon will become our biggest customer, with good growth prospects."
       Shares of AH closed yesterday on the SET at 5.25 baht, up 25 satang, in trade worth 7.5 million baht.