Message from Chairman

In 2019, the growth of civil construction service business was slower down. The growth was dropped from 2.7% in 2018 to 2.2% in 2019 due to lower private-sector investment, especially for real estate. During the middle of 2019, government precipitated and approved the development of transport projects and transport infrastructure projects, that was worth THB 1,700 billion. Since the process of bidding and contractor selection took lot of times, some aforementioned public-sector projects were postponed to 2020, and led to have the higher competition among big contractors who were interested in working with public sector. Our company did the lot of bidding in the big projects of both private and public sectors and won the bidding for 14 projects, accounted for total of THB 7.32 billion. It’s divided into THB 5.83 billion for the public-sector projects and THB 1.59 billion for the private-sector projects. Combining with the existing projects that we have had and realized revenue in 2019, we, therefore, have the total projects, those are worth THB 14.08 billion, as of the beginning of 2020. We will realize the revenue from these projects in the later years.

With the performance in 2019, the company’s current asset was increased by 22.6% from THB 8.64 billion in 2018 to THB 10.6 billion in 2019. The major increase was the current asset. For liability, it was increased from THB 6.17 billion to THB 8.04 billion. It is increased by 30.3% due to higher current liabilities, mainly from short-term loans made with bank institutions in order to spend on construction, unearned revenue from customers and debenture. The company’s equity was increased by 3.7% from THB 2.47 billion in 2018 to THB 2.56 billion in 2019 due to the increase in retained earnings. For revenue, it’s mainly from civil construction service business. The revenue was increased by 20.5% from THB 7.97 billion in 2018 to THB 9.61 billion in 2019. The margins were slightly increased from 8.2% in 2018 to 8.50% in 2019. The margins before tax were dropped from THB 221.4 million in 2018 to THB 211.1 million in 2019 due to higher administration expenses and interests. As a result, the margins as of 2019 were dropped from THB 210.9 million to be THB 191.05 million. EPS was slightly lower from THB 0.15 in 2018 to THB 0.14 in 2019. The company will propose the shareholders for the approval of dividend payout. The cash flow was dropped from THB 587.5 million in 2018 to THB 178.6 million in 2019 due to higher net cash outflow in investment activities and lower the beginning cash flow.

From the overall performance in 2019, although the company earned higher revenues from civil construction service business from 2018, the profitability should still be improved. The company had the net profit margin of 2.3% in 2019, compared with that of 2.8% in 2018 due to the higher competition among big contractors and the company’s operation that needs to be improved for more efficiency and effectiveness. The introduction of modern technology, equipment and machines in civil construction and building installation as well as cost management implemented in 2019 was moderately reflected. However, the standard and quality of performance tends to be increased. Also, the safety and consideration on working environment’s increased resulting in customer satisfaction. The company emphasizes on employee development to enhance their skills in each area including management, to create career path and to implement teamwork and clear performance assessment as well as improving welfares as an inspiration for employees operating the business. The company also focuses on developing and supporting in Supply Chain and the potential partners working together in the big projects of both public or private sectors in order to generate more revenue and margin with the stable growth.

With over 30 - year successful performance, the Broad of Directors set the clear goals in operating business in relevance with the company’s value statement as creating values for all stakeholders. The company’s operated and managed the business in accordance with the good governance. Besides, the support from customers, partners, management team and employees as well as the public and private offices are very important for the company’s business growth with stability . The company would take this opportunity to express sincere gratitude towards all stakeholders’ kind support and contribution all along.

Yours sincerely,

(Mr. Swake Srisuchart)
Chairman of the Board

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2 Soi Sukhumvit 81 (Siripoj) Sukhumvit Rd., Bangjak, Phrakhanong, Bangkok 10260
Tel. : 66-2332-0345 Fax : 66-2311-0851