MGC's EV boom faces a tax threat
Record Q2 profit and first dividend MGC reported Q2 net profit of 352 million baht, up 554% from a year ago, a fourth straight record quarter. Revenue jumped 83% to 8.68 billion baht. The board approved a first interim dividend of 0.24 baht per share. Strong profits and cash returns support the shares.
This is the latest hard proof that MGC's core business is performing strongly, which underpins the stock's value.
EV deliveries already match full-year 2025 In the first half of 2026, MGC delivered nearly 3,700 XPeng vehicles, matching all of 2025. Management expects full-year sales to double as EV demand stays strong and supply delays ease. It is also expanding parts and service centres to support about 7,000 cars on the road.
Surging deliveries are the main engine of MGC's revenue and profit growth, directly lifting its earnings outlook.
Higher EV import taxes could hit MGC hard The Finance Ministry is preparing to raise import taxes on EVs without local factories, with a cabinet proposal due by September. MGC imports XPeng and Zeekr and has no Thai plant, so it would face higher costs. The stock plunged 20% on the news. If passed, retail prices could rise 25-30%, hurting sales.
This is the biggest new risk to MGC's business model and explains the sharp recent share price drop.
Broker sees record profit and 20.20 baht target Yuanta Securities initiated coverage with a buy rating and a 20.20 baht target, forecasting record Q2 profit of 350 million baht. It expects profit to nearly double in 2026 and sees MGC evolving from a car distributor into a future-tech dealer, with potential upside from humanoid robots. The stock trades at just 6.6 times earnings with a 7% dividend yield.
A major broker's bullish view and target price give investors a clear valuation anchor and highlight hidden upside.