King Gen PCL

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.