SET-Listed Eastern Polymer Group Plc (EPG), a Thai plastic moulder, expects to see higher demand for its products as the global semiconductor shortage is believed to have eased.
This will be good for the automotive industry as automakers will launch new models, which will lead to more purchases of certain auto parts made by EPG, said deputy chief executive Chalieo Vitoorapakorn.
"The chip scarcity may return to normal, bringing benefits to the car and parts industries," he said.
EPG's three core businesses are plastics for auto parts under the Aeroklas brand; plastics for thermal insulation for air conditioners under the Aeroflex brand; and plastic packaging under the EPP brand.
In the third quarter of the company's 2023 fiscal year (October 2022-December 2023), EPG saw its revenue drop by 7.5% to 3 billion baht and profit fall by 47.1% to 402 million baht.
The decrease was caused by the impact of the semiconductor shortage and fluctuations of foreign exchange rates.
During the first nine months of fiscal 2023, revenue rose 2.7% year-on-year to 9.1 billion baht. Profit plunged 34.5% to 828 billion baht.
"The stronger baht affected our business performance because our overseas sales make up around 70% of total revenue," said Mr Chalieo.
In the third quarter, revenue from products sold under the Aeroflex brand increased by 8.4% year-on-year to 839 million baht, thanks to more purchase orders from the US.
The company saw earnings from sales of pickup accessories under the Aeroklas brand increase by 5.7% year-on-year to 1.49 billion baht as the chip shortage gradually eased, increasing demand for products in the automotive sector.
EPG said revenue from sales of EPP products decreased by 11.2% year-on-on-year to 669 million baht due to a decline in food packaging orders, though demand for cups began to increase.
The company's business in Australia was affected by floods and flucuations of foreign exchange rates.
