Stocks related to electric vehicles (EVs) and battery manufacturing are expected to benefit from the government's renewal of EV support measures next year, says Asia Plus Securities (ASPS).
The National EV Policy Committee (EV board) is scheduled to have a meeting on Wednesday, with analysts projecting new support measures for EV cars and pickups, with a slight adjustment to the subsidy, ranging from 50,000-100,000 baht in the new scheme, down from 70,000-150,000 baht under the current scheme.
The new EV subsidy package would replace measures set to expire at year-end, as Prime Minister Srettha Thavisin called for an urgent meeting of the EV board on Nov 1, the brokerage said in a research note.
The new package is also expected to cancel the subsidy for electric motorcycles, according to ASPS.
"If the government announces more policies to support EVs starting next year, it will strengthen investor confidence in Thailand and help to build up the domestic EV industry," said the brokerage.
The Thai Board of Investment has approved 23 projects for EV production from 16 companies. Chinese manufacturers top the EV manufacturer segment in Thailand, led by BYD, which has annual production capacity at its Rayong plant of 150,000 units and total investment of 17 billion baht.
"Measures to renew support for EVs would make companies in related sectors appealing to investors again. Investors can make short-term speculative investments on stocks that are likely to benefit from such policies," said ASPS.
The companies expected to benefit are in industrial estate groups, with the top pick WHA Corporation, said the brokerage. Other beneficiaries include EV producers Energy Absolute (EA), Nex Point (NEX), and PTT, as well as EV battery producers Global Power Synergy (GPSC) and EA, said ASPS.
Manufacturers of EV charging stations should also be helped, including EA and PTT Oil and Retail Business (OR). Companies that make electronic parts related to EVs, such as Delta Electronics (Thailand), KCE Electronics, and Hana Microelectronics are also set to benefit if the EV support measures are renewed, said ASPS.
