Bangkok--15 Feb--Penettrate
Vintage Engineering Plc. (VTE) vows to expand aggressively. Ready for IPO offering in the mai stock market, the company plans to expand their MEP Engineering Business to serve the booming market. Its management is confident of strong growth potential, due to the continuing expansion in cypouionstruction projects in both private and governent sectors
Mr. Soruj Rojanabenjakul, Chief Executive Officer, Vintage Engineering Plc. (VTE), one of the leading MEP Contractor (Mechanical, Electrical & Plumbing Systems) in Thailand, reveals that the company has been operating in the construction business for more than 18 years. The company specializes in setting up and providing maintenance services for the MEP system in large buildings which include Electrical System, Mechanical System and Plumbing System. The company has focused on quality construction together with on time project completion. Therefore, they can gain the trust from the Project Managers of the large Construction Companies which comprise real estate developers, leading hotels, major construction contractors and Government Agencies which enable the company to grow contuniously.
The company has experiences for setting up and maintaining MEP engineering systems in all types of buildings. Therefore, they are considered to be the highly-trusted mid-sized Engineering contractor well accepted among project owners and big contractor firms which allow the company to be able to compete with other large competitors in bidding for the engineering construction projects.
Most of the recent projects are high quality projects such as “Sheraton Hua-Hin Hotels and Resorts” and National Institule of Metrology (Thailand) and the just-in-time project such as “Home Pro Shopping Complexes which have to be completed within 4 months. Since the company is well-known for their high quality and on time delivery which bring the trustworthy to the company, its backlog at the end of 2010 was recorded at the highest level of 496 million baht.
Significantly, the company focuses on cost controlling system by investing in Software development which can reflect the actual cost of construction. In addition, the company also manages central material usage in the working unit from time to time. All process leads to high gross profit margin to sales of 16-20%, much higher than gross profits of general contractors.
Even Though, 2010 is not considered to be a good year for construction industry, the company’s revenue still increases to 356 million baht with net profit of 15.78 million baht, achieving net profit margin accounted to 4.4% while in 2009, the company recorded total revenue at 315 million baht and net profit of 19.12 million baht with net profit margin of 6%. At this rate, the Profit margin of the company is considered to be among highest among other engineering contractors, said Mr. Soraj.
The company has plan to offer its new common shares to public (IPO) for the first time in the amount of 20 million shares. Having increased its registered capital to 80 million baht in March, 2011, VTE will be the first company to list in the MAI stock market this year. The funds raised from IPO will be utilized to increase the cash flow of the company for the expansion of their business since this is the growing stage of the company. The construction markets are expanding both in Mega Projects (Infrastructure) and private sectors such as Condominiums, Retail Complexes and Hotels in Bangkok and Metropolitan, along with office and government agancies. In this year, the company expects to win the new projects continuously. Currently, VTE has a high backlog of 496 million baht from 15 projects. Revenue recognition will happen almost in this year and some parts in 2012-13.
Ms. Pornpimol Damrongsiri, Senior Executive Vice President, Asia Plus Securities Plc., the Financial Advisor of Vintage Engineering PCL.(VTE), adds that VTE has expertise in setting up engineering system which focus on MEP solutions and has won the trust from the project owners, controllers and leading construction companies . This results from their high quality of work, project management and cost controlling which make the company can achieve the bidding continuously. Moreover, its high gross profit margin of 16-20% and the high net profit margin of 4-6% are higher than those in overall industry. This clearly shows the company efficient operation. Moreover, the industry is expanding continuously in this year which is the great opportunity for the company to expand continuously and sustainably by winning new projects.
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Grantarit / Panistha / Kridsanasorn