Bangkok--16 Jan--Master Mind Communications
SET-listed motorcycle leasing firm Group Lease Public Company Limited (GL) is targeting stronger-than-expected sales growth and financial performance this year — thanks to a robust Thai economy plus closer ties and improved relations with motorcycle dealers in various parts of Thailand.
GL had earlier projected monthly sales to increase to 10,000 units before the end of this year but according to the company’s chairman and chief executive officer Mitsuji Konoshita, the target is now expected to be achieved by May.
“Our relations with old dealers have improved and we are signing on new dealers in several provinces. These dealers are giving us much more business than before,” Mr. Konoshita stated today (Jan 16, 2013). He added that the stronger sales growth has also come as the result of more purchasing power by the consumers on the back of higher wages and good farm-crop prices.
GL is now recording monthly sales of about 8,000 units, which roughly double from the monthly averages of 3,800-4,000 units during “good years in the past” such as in 2010. The numbers dipped somewhat in 2011 due to the severe flooding which badly affected several Central Plains provinces but recovered strongly last year as the result of the company’s aggressive marketing drive and the country’s strong economic recovery.
Mr. Konoshita stated that all-year performance for 2012 is satisfactory. The company reported combined profits of 250 million baht for the first nine months last year. Results for the last quarter of 2012 are expected to be reported in late February.
But financial performance this year is expected to be much better because of two main factors: the stronger than expected sales growth in Thailand plus contributions from the company’s operations in Cambodia.
GL last year began diversifying into Cambodia as the first leg of its ambitious business plan to expand into the ASEAN markets to capitalize on the ASEAN Economic Community (AEC) which is coming into being in 2015.
Through its wholly-owned subsidiary GL Finance (GLF), the group has set up its business infrastructure in Cambodia and has been testing the Cambodian market with an initial group of 130 clients. “The results are quite satisfactory since all the clients are punctual in paying monthly installments and there has been no NPLs,” Mr. Konoshita stated.
GLF is well-positioned to tap the huge growth potentials of Cambodia’s motorcycle market since it is the first company to be granted license by the Cambodian national bank to operate the leasing business. It has also received exclusive rights to provide financing services to the customers of all HONDA dealerships in Cambodia. This has given GLF an important edge since HONDA is the leading brand commanding about 95% share of the Cambodian motorcycle market.
Mr. Konoshita said after all the necessary preparations, GLF will start conducting business in earnest this year and the Cambodian operations will make significant contributions to GL’s bottom line beginning in the third quarter this year.
Distributed for Group Lease Public Company Limited
by Master Mind Communications Co., Ltd.
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