Ch Karnchang targets record backlog in 2012
Play
Ch Karnchang, a leading contractor, expects its backlog will hit a new high of Bt120 billion next year if the company signs contracts for the Xayaburi Dam and Green Line mass-transit projects.
“Currently, the company has a backlog of Bt30 billion. Those two projects would take its backlog to Bt120 billion next year as targeted,” said Vorapote Uchupaiboonvong, executive vice president for accounting and finance of Ch Karnchang.
The Xayaburi Dam project in Laos, which is under an international legal process, is worth Bt76 billion while the Green Line project is valued at Bt30 billion.
“The company expects its gross profit margin next year at 10 per cent, up from this year’s estimation of 2-3 per cent due mainly to impact from higher building-material prices. However, the Bt300 minimum daily wage will affect only 1-2 per cent of its total costs, which is manageable. The company now pays a minimum wage of Bt220 a day,” Vorapote said.
He said Ch Karnchang would invest in its subsidiaries by using its own working capital and was ready to list shares of its subsidiary CK Power on the Stock Exchange of Thailand when the market has good sentiment.
He added that the company estimated its revenue this year at Bt12 billion to Bt13 billion, lower than Bt14 billion last year. However, it expected a rise in net profit this year to Bt1 billion, partly driven by capital gain from selling shares in SouthEast Asia Energy (SEAN).
