Bangkok--13 May--TTCL
Toyo-Thai Corporation Plc. (TTCL) continues growing; posting a high 33% increase in Net Profits to 108 Million Baht in 1st quarter. In addition, its Net Margin also jumps 36% with bright prospect from overseas projects.
Khun Suvit Manomaiyanon, Senior Vice President and Director, Sales & Contract Division of Toyo-Thai Corporation Plc, Thailand’s only EPC Contractor reveals that “For the 1st quarter this year, our Net Profits has increased 33% to 108 Million baht from 81 Million baht in same period last year. Our Gross Profit also jumps 27.3% to 271 Million Baht from 212 Million baht, while revenues drop slightly to 1,776 Million Baht from 1,821 Million Baht in Q1 last year.
“We are pleased to continue growing our net profits by 33% and more importantly, increasing the net margin by 36% from 4.45% in Q1-2010 to 6.06%. These result from our effective project management, cost-control and from realizing revenues from Vietnam and NNE Power Plant Projects. Besides, we also have some higher-margin EPCm projects.
This quarter, TTCL or Toyo-Thai has a Return on Equity (ROE) of 27.68% (annualized)- the highest in contractor sector and an Earnings per Share (EPS) of 0.22 baht, an increase of 29.4% over that of same period last year. As a cash company with 1,335 Million Baht in cash with no interest-bearing debt, TTCL just paid out a second-half dividend of 0.22 baht per share on April 29, 2011. For the full-year, the company paid out 0.37 baht per share dividend.” Khun Suvit explains.
At the end of this quarter, TTCL has a backlog of 7,400 million baht with major projects such as an Ethanol plant in Vietnam and the 4-billion baht NNE Power Plant in Pathumthani, which TTCL also invests and holds 71% of preferred shares in the company. In return, TTCL will receive a guaranteed dividend of 115 million baht every year for 25 years, starting from early 2013. This revenue stream will strengthen the company business result further.
“TTCL will use the Two-hat Strategy to expand the business. The company will not only undertake an integrated EPC construction work but also jointly-invest in the interesting projects ( such as NNE power plant). With the strong financial status with large cash on hand, experienced management teams and engineering teams, the company also benefits from having 3 large shareholders groups: Toyo-Engineering and Chiyoda Corporation being the 3rd and 2nd Largest EPC Contractors in Japan and Italian-Thai Development Plc., as Thailand’s Largest Contractor. Currently, TTCL has been in bidding process for various large projects with combined value over 64,000 million baht” Khun Suvit explains.
Founded in 1985, by Toyo Engineering (JAPAN), a leading Japanese EPC Contractor and Italian-Thai Development Plc., Thailand’s largest general contractor, Toyo-Thai Corporation Plc. has a registered capital of 480 million baht. Recently, Chiyoda Group, Japan’s 2nd largest EPC contractor has invested and holds 7% shares in TTCL. TTCL is the only Thai Contractor which has achieved Net profits for 25 years, consecutively. The company’s track records cover over 160 projects in 24 years, with combined project value of 60,000 million baht. With its 1,335 Million baht cash on hand, the company has no interest-bearing debt. Its local customers include many large listed conglomerates such as PTT Group, SCG Group, Vinythai Group, Kao Group from Japan and German’s Bayer Group. Its main markets are Vietnam, where it has an operating subsidiary, China, Asian Countries, Middle East Countries, Africa and USA.