Message from Chairman
In the first half of 2018, the investment value of construction in private and public sector was slightly expanded by 3.11%, worth of THB 639.2 billion because the construction in public sectors was slightly expanded by 1.89% only due to the delay in the project progress that consists of many processes including approval and biding processes. However, in the second half of 2018, the construction in the public sector was increased, but the competition between major and medium-sized contractors during this period was quite high. The company participated in the bidding of several construction projects owned by the public and private sectors, whereby the company won 18 projects with total value of THB 8.17 billion (THB 4.2 billion for the public sector and THB 3.97 billion for the private sector). Combining with the existing projects after revenue realization in 2018, the company had the backlog at the beginning in 2019 with the amount of THB 15.7 billion which will be realized in the upcoming years. The company’s overall operating performance in 2018 was decreased compared with that in 2017. The total revenue was THB 7.97 billion which was dropped by 5.4% when compared with that in 2017. In 2018, the revenue from sales of investment in subsidiary companies and total comprehensive income was THB 223.73 million or accounted for the profit per share of THB 0.16
The construction business which is the company’s core business had the total revenue of THB 7.97 billion and the comprehensive income of THB 212.9 million. The revenue was increased by 44.7% compared with that in 2017 or accounted for the profit per share of THB 0.15. The cost of construction was slightly increased compared to the revenue from 90.62% in 2017 to 91.8% in 2018; however, it was in the controllable level. The administrative expense, which was approx. 5.0% of revenue being the same level in the 2017. For cash flow as of 2018 the company‘s cash and cash-equivalents was dropped from 2017 by THB 2 billion to be THB 585.1 million because the cash payment in the operating activities was increased from THB 608.3 million in 2017 to be THB 1.54 billion in 2018. The balance of abovementioned cash flow was enough for the operation. Also, the company has the credit limit from banks with the amount of THB 11.9 billion to support the operation.
In overall, the operating performance in 2018 was better especially for the profit from construction business that was increased by 45% resulting in the profit per shares which increased from THB 0.12 to THB 0.15, accounted for 25% increase. The financial position was increased especially for the shareholder’s equity in the consolidated financial statement that was increased from THB 2.31 billion in 2017 to be THB 2.47 billion in 2018, accounted for 6.9% increase. In the separated financial statement, it was increased from THB 2.24 billion to be THB 2.39 billion, which was accounted for 6.7% increase due to the increase in retained earnings – unappropriated. The equity was slightly increased because there was only one a holder of PLE-W3 exercising the right. The total asset was dropped from THB 9.02 billion in 2017 to be THB 8.64 billion, which was lower by 4.2%. For the company’s financial statement, it was dropped by 4.3%, which was from THB 9.39 billion in 2017 to be THB 8.98 billion in 2018 due to the decrease in cash and cash equivalents. The total non-current asset was unchanged since last year. The total debt including that in both the consolidated and the separate financial statements were decreased from THB 6.71 billion to be THB 6.17 billion and from THB 7.15 billion to be THB 6.6 billion due to the repayment of debenture with the amount of THB 444.7 million.
In 2018, the company has been doing business for 30 years. The company still continue improving the construction business which is the company’s core business through finding new technology including modern equipment and machines in order to increase the standard and customer’s satisfactory in company’s construction projects.
The human resource development of the company including in skills development and benefit management in order to create the working inspiration is the important factor supporting the company to have the strong growth. The continuous support and improvement in Supply Chains and finding a new partner that has the potential to doing the mega project together are the company’s strategies that we have been doing in order to generate revenue and profit.
The Board of Directors well know that the company’s operational performance in 30 years has been supported by stakeholders. The company was successful in the construction projects and installation of building systems resulting in trust from customers and partners as well as other people. The company would like to make a commitment to operate and manage the business in accordance with the corporate governance. The Board of Directors would like to take this opportunity to express sincere gratitude towards all stakeholders’ kind support and contribution all along.
(Mr. Swake Srisuchart)
Chairman of the Board