Construction companies look to bright future under new government
Construction firms are confident the new government will continue to invest in developing the country's infrastructure in line with previously drawn-up plans and that that this will boost their financial results for 2019 even though bidding for many of the projects has been delayed.
Sino-Thai Engineering and Construction (STEC) is confident its total revenue will achieve the target of between Bt30 billion and Bt32 billion by the end of this year, up 14 per cent from last year. It is currently contracted for and construction is already underway on a project worth Bt100 million, which will boost revenue through 2021, the company’s president Pakpoom Srichamni said recently.
The company has also applied to join bids worth up to Bt80 billion in this year with a view to increasing its workload and generating further income. This does not include the joint venture bid with partners for the U-Tapao Port and Motorway.
Meanwhile, the Stock Exchange of Thailand reported STEC’s big-lot sale on Tuesday of 68.97 million shares at Bt26 per share worth Bt1.793 billion in total. In this regard, Anutin Charnvirakul, head of Bhumjai Thai, confirmed he had sold the big lot on Tuesday to a family member as he prepares to take up a ministerial post in the new government.
Ch Karnchang Plc also expects its total revenue to reach Bt30 billion this year based on a construction project in hand worth Bt94.62 billion. The company also will join bids for new infrastructure projects worth more than Bt200 billion this year and expects the new government to open bidding this year, the company's chief executive officer Supamas Trivisvavet said recently.
She added that the company has maintained total revenue at almost the same level of Bt31.17 billion as last year. Most of its current projects are under construction, with some to be completed in the next year.
Meanwhile, Nawarat Patanakarn Plc has revised down its revenue projections for the year, from early growth estimates of between 30 per cent and 50 per cent and total revenue of Bt10.03 billion in light of both delays in bidding for new infrastructure projects as well as to residential projects affected by the Bank of Thailand’s loan-to-value regulation that come into effect on April 1, This has directly affected its portfolio, senior vice president of the new business & strategic planning department Pasan Swasdiburi said recently.