EA has been putting a lot of effort into its EV-related business lately, as these new businesses will be the indicator for its performance from hereon.
The reason for Energy Absolute Public Company Limited (EA)’s advancement into EV business might be due to the slow growth of the biodiesel business even though it generates stable revenue. However, the revenue contribution for the biodiesel business is considerably low compared to the overall income channels of EA.
Meanwhile, the renewable energy projects in domestic and overseas have commenced their operation, and there is no new project as of now.
Which is why the EV, electric ferry, battery factory and EV charging station business will be EA’s main driving factors from now on.
After the plan to expand its EV business into taxis failed miserably due to the Covid-19 outbreak, the company announced an advancement into electric bus business to commute in Bangkok instead.
The company expected to deliver the first lot of 120 electric buses within June 2021 from the target of 500 buses this year. EA planned to produce more than 1,000 buses in 2022.
Meanwhile, the battery factory business is in the process of test run, expecting the first phase production in 3Q21. Primarily, the battery will be distributed to other businesses under EA’s management such as the electric bus and ferry.
Currently, EA has 417 EV charging stations, while targeting the expansion to reach 1,000 stations for its first milestone.
More importantly, EA’s business is also in line with the Thai government’s plan to go full EV by 2035. The benefit from EV business is that the government will support users with fundamentals and tax on the EV, which would raise eagerness in using EV for Thai people.
If all the works go as planned, investors might be able to see a big comeback for EA in the near future.