Ticon braces for steep fall In sales, profIts
Ticon Industrial Connection, which builds and sells factories and warehouses for rent, said its revenue and net profit would fall by 33 per cent compared to last year due to the suspension of sales during the flood crisis.
"This is the first year our revenue and profit will be lower than the previous year as more than 180 rental factories owned by the company and Ticon Property Fund have been flooded," managing director Virapan Pulges said yesterday.
This year’s revenue is estimated to fall to Bt2.2 billion from Bt3.3 billion in 2010. Its net profit is likely to be lower than last year’s Bt821 million.
Ticon predicts a 40-per-cent loss quarter-on-quarter in this quarter’s rental revenue as the factories have been inundated and cannot be sold to Tfund as planned.
Due to the flood damage, these factories were reappraised at Bt700 million, much lower than the earlier value of Bt1.5 billion. These factories were in line to be offered in the first quarter of next year.
The company expects a revenue loss of Bt360 million for the four months since the floods started to restoration, or October-January.
Ticon has budgeted more than Bt200 million for the rehabilitation of flood-hit factories and warehouses in the expectation of delivering completely repaired factories to customers in February. All flood-hit factories are covered by insurance. Next week, insurance companies will assess each factory’s damages.
For next year, Ticon sees a sharp increase in revenue with asset sales of about Bt2.7 billion to Tfund. About Bt700 million of the total is likely for the first quarter and Bt1.5 billion to Bt2 billion for the third quarter. About Bt1.5 billion to Bt2 billion of assets will be sold to the T-Park Logistic Property Fund in the second quarter.
Ticon plans to invest Bt3.5 billion next year, up from Bt3 billion this year. About Bt2.5 billion will go for construction of warehouses and Bt1 billion for purchase of land.
Ticon’s flood-hit factories include 37 in Rojana Industrial Park, or 17 per cent of its portfolio, 20 in Hi-Tech Industrial Estate, or 9 per cent, two in Bang Pa-in Industrial Estate, or 1 per cent, 11 in Nava Nakorn Industrial Estate, or 4 per cent, and Tpark warehouse, or 3 per cent.
One factory in Lat Krabang Industrial Estate and 10 factories in Bangpoo Industrial Estate are on close watch.
