Sammitr Group Holding is bearish over its prospects, expecting total revenue to fall short of its target this year at 7.2 billion baht.
Trade tension between the US and China, the stronger baht and the global economic slowdown are taking a toll on the company’s top line this year, said chief executive Yongyuth Posirisuk.
The company has no plan to revise its investment for either local or overseas markets because it expects the global economy to rebound next year, he said.
Sammitr Group is exploring new markets in Asean outside Thailand, the Philippines and Indonesia for expansion and to establish a factory.
“The new markets will support our business in China affected by the trade war. The company plans to launch new innovation products to serve customers,” said Mr Yongyuth.
Sammitr Group set a revenue target of 7.6 billion baht in 2020, maintaining its goal of 10 billion in 2024 to secure its position as the leading automotive company in Southeast Asia.
He said the group is focusing on innovation technology to serve global trends and 5G technology in Thailand.
The company has launched a digital platform designed to cater to future needs of Thai and regional logistics industry.
“Sammitr Group has developed a digital platform because the wave of digital disruption has changed the business model,” said Mr Yongyuth.
The group will increase its innovative investment budget to 1.5% of its revenue next year from 1% now.
“This investment budget will include merger and acquisition activities overseas. The company is seeking opportunities to acquire innovation companies and we are in talks with 2-3 companies,” he said.
The holding company has eight business units: trucks and trailers; auto parts; pickup conversion; parts supplier; green energy; international business; others (such as online solutions); and digital platforms.
Meanwhile, Energy Minister Sontirat Sontijirawong said Thailand’s logistics industry consumes around 40% of the country’s energy so the government should develop energy policies to serve the sector.
Thailand’s logistics industry is second in Asean after Singapore and 34th globally.
