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Ch Karnchang confident of Bt40 bn revenue goal this year

Apr 28. 2016
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By The Nation

CONSTRUCTION company Ch Karnchang (CK) is confident on its 2016 outlook with a restructured management team, and says it is ready for new construction and PPP (public-private partnership) projects, expecting revenue of Bt40 billion.

Executive chairman Plew Trivisvavet said the company achieved strong performance in 2015 while the management restructuring of its subsidiary Bangkok Expressway and Metro was accomplished as planned.

The management restructuring for BEM is intended to bring a great deal of benefit by strengthening the company’s financial stability, streamlining its operations, and allowing it to seize opportunities for new projects, he said.

Meanwhile CK has enhanced its workforce readiness by the addition of new senior management team members, as well as strengthening its financial readiness and leveraging strategic partnerships to accommodate upcoming infrastructure development inside and outside Thailand.

With its 43 years of experience, extensive knowledge base, advanced engineering expertise and high-capacity working teams, Ch Karnchang says it is confident of quality project outcomes and accomplishing its business goals.

The company plans to bid for new mass-transit and other transport projects including the MRT Orange Line, Pink Line and Yellow Line, dual-track railways, motorways, and Suvarnabhumi Airport Phase 2, and is confident that it will acquire 20-25 per cent of the construction work for these projects, Plew said.

With strong and diversified subsidiaries like BEM, TTW and CK Power, CK is also ready to invest in the government’s infrastructure projects under the PPP scheme, including expressways, superhighways, electric train systems, power plants and water-treatment plants.

As for its investment outside the country, two key markets are Myanmar and Laos, where infrastructure development is seeing a high growth rate, he said.

CK chief executive officer Dr Supamas Trivisvavet said the company managed to maintain a strong revenue stream and profit ratio in 2015 with revenue of Bt38.02 billion and net profit of Bt2.26 billion.

Of the total revenue, Bt34.81 billion came from construction business, which grew by 5.62 per cent from 2014. The gross profit ratio for 2015 was 8.22 per cent.

After the strong performance in 2015, the company’s annual general shareholder meeting on 29 April 2016 agreed to pay a dividend of Bt0.40 per share. When combined with the previous interim dividend of Bt0.25 per share, the total dividend for its 2015 performance is Bt0.65 per share, she said.

For 2016, CK’s revenue target for construction business is Bt35 billion to Bt38 billion.

The company’s current backlog accounts for Bt83.55 billion.

Last month, the company signed a construction contract for the Pattaya-Map Ta Phut Motorway-Contract 5 project for Bt727 million.

The Na Bong Power Substation project in Laos, worth Bt2.2 billion, currently awaits contract signing.

The company was also recently awarded additional construction work for the Xayaburi Hydroelectric Power Plant Project in Laos worth Bt19 billion, for which the contract is expected to be signed later this year. The construction of Xayaburi Power Plant is now reaching 60 per cent completion as planned.

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