MBK invests for balance in revenues from core trades
MBK plans to invest Bt3.7 billion to Bt3.8 billion over three years to balance its business portfolio in the future.
"We will focus on allocating our investment in the hotel business as we want to balance our revenues generated from seven core businesses currently operated by MBK and to reduce dependency on the shopping-mall business," chief executive Suvait Theeravachirakul said yesterday.
The three-year capital-expenditure budget is divided into Bt750 million for shopping malls, Bt1.4 billion for hotels, Bt200 million for golf courses and Bt1.4 billion for property projects.
"This huge capex budget will not detract from our ability to pay dividends as we have a high level of cash flow each year. We are also able to take out loans with financial institutions," he said.
The shopping-centre business contributed about 80 per cent of MBK's total revenues last year, but reduced to 62 per cent in the beginning of this year.
"We expect to grow our total revenue by 10 per cent in fiscal 2011 [ending June 2012] and our net profit will increase in the same direction," Suvait said.
The growth in revenues will be driven by the company's rice-packing business, as prices are expected to rise after the government implements its rice-mortgage programme, and new shopping-mall projects.
Both the Paradise Park shopping complex and The Nine community retail centre will record full-year earnings.
The company will acquire a hotel called Lanka Land and recognise more revenue from its residential development business in Phuket, which will generate about Bt400 million in the first phase.
"Beside, we're planning to develop real-estate projects, including single-family homes and condominiums, on our existing land in Ratchadaphisek, Pathum Thani and Phuket.
"We are in negotiations to acquire a new hotel. We are also interested in expanding abroad, which will be undertaken with partners. MBK has recently joined with Dusit Thani Hotel in acquiring a hotel business in the Maldives," he said.
MBK posted consolidated revenue of Bt1.29 billion and earnings per share of Bt8.54 in fiscal 2010, which ended in June.
