Chonburi Concrete sure of sharp rise in earnings
Play
Chonburi Concrete Products is confident its earnings this year will rise sharply due to increased construction activity and demand for construction materials.
The listed company plans to bid for more projects, keeping its backlog around the Bt2-billion mark, and to invest Bt100 million in production capacity expansion in the second half of the year.
Managing director Arthit Taweepkornsukasem yesterday said he expected CCP to surpass last year’s net profit of Bt354.2 million, which derived from a mix of state and private projects.
Moreover, the company will recognise profits of about Bt313.5 million from special items related to rights to buy back land and fixtures at Chonburi Kangyong Co’s Kangyong Home Star (Pattaya branch).
CCP will strive to maintain an average profit level of 17.2 per cent this year, he said.
As for operating results for the current quarter, CCP sees continuing business growth close to that in the first three months of the year, when revenue of Bt682.5 million and a net profit of Bt40.7 million were generated, based on increased construction activities in both the state and private sectors.
CCP expects full-year revenue growth to come in at 15-20 per cent over the Bt2.6 billion generated last year, as a result of more projects secured by the company. Revenue should meet the company’s target, he said.
The company is prepared to bid for new projects to maintain its backlog of projects in hand at the Bt2-billion level. The current projects secured are worth Bt2.1 billion, with state and private-sector projects accounting for equal shares.
All the revenue from the pending projects will gradually be recognised through to the second quarter of next year, the MD added.
Capacity expansion
CCP plans to invest Bt100 million to expand production capacity in the second half of this year, in order to meet rising demand for its range of concrete products.
Demand for such products is expected to rise sharply in view of the increased number of projects in Bangkok and major cities in the provinces.
Furthermore, there are plans to improve internal operations in terms of transportation and production efficiency to support rising orders and to maintain the company’s profitability level at 17 per cent.
Last year, CCP generated Bt2.6 billion in revenue, up 15 per cent from Bt2.26 billion in 2011. Net profit was Bt215.42 million, up 510 per cent over the Bt35.29 million earned in the previous year.
This year’s first-quarter revenue of Bt682.5 million was 18 per cent higher than in the same period last year, while net profit of Bt40.7 million represented a year-on-year increase of 54.8 per cent.
