In 2023, Thai economy expanded only by 1.9% and slowed down from the expansion by 2.5%. The investment value of construction by the public and private sectors in 2023 was around THB 1.34 trillion, contracted by 1-2% due to the contraction of the construction investment from the public sector during the transition of government and the delay of the budget disbursement and the process of new construction projects. Meanwhile, the investment of private sectors was stable from the investment of private sectors especially for the commercial constructions in the key provinces where the tourism business tends to be continuously expanded. The bidding competition of both private and public sectors between the large-sized and the middle-sized contractors is very high. The price of main construction materials such as iron, concrete, wire, copper, aluminum and equipment for buildings tends to decrease or remain the same resulting in the positive impact on the operation of contractors.
In 2023, the company did the bidding of both the private sector’s and public sector’s projects and won the bidding of 25 projects, accounted for the value of THB 5.58 billion, which’s lower than the budget. However, the company had the backlog of around THB 1.5 ten billion from 2022. After realized the revenue of THB 8.95 billion in 2023, the company’s backlog as of the beginning of 2024 was around THB 15.1 billion that will be recognized in 2024 and other years. Besides, the company has the plan to join the bidding of large infrastructure projects with the large construction company of Thailand and overseas as well as to get the projects from the large private sectors. The company expects to have additional projects, accounted for THB 14.4 billion in 2024.
The company’s performance in 2023 was better in terms of revenue, profit and winning the bidding of many projects. The company had the revenue of THB 9.36 billion, which’s increased by 13.8% from 2022. 95.6% of revenue was from the construction business and the rest was other revenues. The company had the gross profit of 8.3% in 2023, which’s higher than that in 2022 in which the profit was 3.4% due to the lower price of main materials in 2023 and higher efficient and effective cost control of the company’s construction projects as well as the administrative cost control in 2023, which’s lower by 12.7% if compared with that in 2022. However, the company had higher cost of financing due to higher interest from debentures and project financing for the construction projects especially for the public sector’s ones that have the longer terms of payment. Nevertheless, the company expects that in 2024 the cost of financing will be decreased since the company can collect more the money from the public sector’s projects. As of 2023, the company had the profit of THB 230.2 million or the earnings per share (ESP) of THB 0.17 resulting from the control of the direct cost and administrative expense that’s decreased.
In 2023, the company had the total asset that’s increased by 11.3% from THB 14.35 billion in 2022 to THB 15.95 billion. It can be divided into the current asset of THB 13.45 billion (84.2%) and the non-current asset of THB 2.53 billion (15.8%). The current asset was increased from THB 11.95 billion in 2022 to be THB 13.45 billion in 2023 or by 12.5% due to the increase in completed projects that will be billed based on the construction contracts. The major projects are the projects of public sectors and account receivables. The company had the total liability that was increased by 10.9% from THB 12.13 billion in 2022 to THB 13.4 billion in 2023. For the currency liability, it was around THB 12.83 billion which increased by 15.3% from THB 11.13 billion in 2022, which are mainly the short-term debt from project financing, trade account payables and unearned revenues. For the total equity, it’s increased from THB 2.22 billion in 2022 to THB 2.52 billion in 2023, accounted for 13.5% due to the profit of operation in 2023 resulting in decrease in D/E ratio to be at 5.33 if compared with D/E ratio, which’s at 5.45, in 2022 while the gearing ratio was increased from 1.76 in 2022 to 2.1 in 2023 which is maintained in the level that the financial institutions can accept.
The company appointed the subcommittee to monitor the company’s other operations to comply with corporate governance and to review and control the risks to be low level and to define the solutions and improvements and efficiently minimize the risks of the company’s other transactions.
The company improved the operation processes to be more efficient and effective by setting the strategic plans for all departments of the company to operate and manage in accordance with ESG framework and to pay attention to the environment around the working areas and waste and pollution that can cause impacts to the other workers in the site or to people in the nearby communities. Also, the company emphasizes on the safety and environmental conditions and selects the materials that have less environmental impacts especially for being part of lower the greenhouse gas (CO2), arranges the waste separation project to separate the waste from all construction projects for recycling and supports and trains the employees and workers in accordance with Human Rights Framework for doing operations and providing the knowledge and skills for both construction techniques and system installation ,which is the important part for the company to have the good constructions for customers and to be acceptable by the society. The company always emphasizes on value chain by exchanging the working knowledge and experiences as well as supporting for the innovations for constructions and construction materials and improving the mentioned operations that are the important part for the company‘s stable growths.
The company would like to take this opportunity to thank for all stakeholders as well as customers, business partners, executives and employees, and public and private officers supporting the company and making the company’s business operations to achieve the goals for over past 30 years.
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