Bangkok--16 Jan--Penettrate Group
? Co-Invest in Solar Plant and Utilities Projects for Stable Income
? Target EPC Construction projects and Joint Investment in Asia, Middle East and USA
Toyo- Thai Corporation Plc. (TTCL) today reveals its plan to invest in Siam Solar Power Plant project in Thailand with KOMIPO, its new Korean partner. TTCL also announces Business Strategies to grow both global and domestic market and through joint investment in Utilities Projects.
Mr. Hironobu Iriya, Toyo-Thai Corporation Plc’s President and CEO, reveals that TTCL recently signed an MOU and become ‘Business Partners’ with KOMIPO (Korea Midland Power Co., Ltd.), a leading Korea-based International Power Operator and Contractor to jointly invest and work together on a Navanakorn Electric Power Plant project in Pathumthani province. Latest, TTCL and KOMIPO plan to jointly invest in another Solar Power Plant Project in Angthong province. The project is an 8-megawatt Solar Power Plant with a project value of about 1 billion baht. The Project owner is Siam Solar Power Co., Ltd (SSP) whose tentative shareholding is 55% owned by Siam Steel Grating Group (SSG), 35% owned by TTCL, and 10% owned by KOMIPO. The Joint Venture Agreement among related parties has been signed on January 12, 2012.
“With its signed Power Purchase Agreement (PPA) with the Provincial Electricity Authority of Thailand (PEA) for 10 years, we plan to partially finance the project for 600-700 million baht by interested commercial bank. With a confirmed Adder of 8-baht, SSP is expected to generate revenues of 100-150 million baht per year with a payback period of only 6-7 years. The Consortium of Toyo-Thai Corporation Plc. and PWH (Thailand) Co., Ltd. (one of SSG’s subsidiary) will implement EPC works within the 1st quarter this year. SSP will utilize the Photovoltaic Technology- the widely-recognized Solar Farm Technology. TTCL has successful experiences in building 2 solar power plants in Thailand using this technology last year. This SSP power plant is expected to become the ‘Prototype of Solar Farm’ projects in Thailand. Efforts will be made to reach for a high quality standard of Solar Power Plant. “It will not merely be a Solar Power Plant but TTCL’s Solar Power Plant to differentiate from the others”, Mr. Iriya adds. With the planned completion in the early of 4th quarter this year, the plant will start generating Electricity to the PEA by the end of the same quarter. KOMIPO, who has strong expertise in operating a large number of Solar Power Plants at present, will contribute their know-how to ensure the project success. In addition to this VSPP Project, Toyo-Thai and KOMIPO are evaluating many other projects to jointly invest in and do EPC work at the same time, both in Thailand and particularly, overseas.”
Mr. Iriya, TTCL President & CEO adds that the company is pleased with our Success in 2011. With a record-high backlog of around 20,000 million baht, we are confident of achieving a 30-40% revenue growth forecasted earlier. In 2012, TTCL plans to continue growing our revenues by another 30-40% for 2nd year, consecutively. Our Company’s Business Directions are to grow both internationally and domestically by undertaking the integrated EPC projects as well as jointly-investing in attractive Utilities projects.
“Our Core Business Strategy of TTCL is to Jointly-Invest in selected Utilities Projects in Thailand and overseas, in order to create a highly stable income and achieve Higher Return for our cash reserve. The Navanakorn Electric Project is our first project that we not only undertake the whole EPC work to build a 110-megawatt power plant in Pathum Thani but we also invest in the project by holding a 70.95% in preferred Share.
In addition, we continue to expand our Turnkey EPC Construction services in many key target markets such as Southeast Asia, East Asia, Middle East, the USA and Thailand. Having a full-established Vietnamese subsidiary in Toyo-Vietnam for 14 years, the company has set up subsidiaries in Malaysia, Myanmar and latest, the USA. Its Overseas Business has grown rapidly and has now accounted for more than 50% of our Total Revenues. And that trend should continue as the company is bidding for many large overseas projects with combined value over 50,000 Million Baht. Meanwhile, TTCL will continue to expand its EPC Business and Joint-Investment Opportunities in Thailand by targeting both repeated global customers and new customers.
For the 9-month period ending 30 September, 2011, Toyo-Thai Corporation Plc (TTCL) has achieved a 30% revenue growth equaling 5,249 million baht, and a Net Profit growth of 18% equaling 266 million baht. The company achieves an increase in annualized Earnings per Share (EPS) to 0.72 baht per share while maintaining its Net Margin at 5.06%. With a highly consistent Return on Equity (ROE) of 23.24%, TTCL has a strong financial condition and a high-level of cash on hand of 1,832 million baht.
Founded in 1985, by Toyo Engineering (JAPAN), Japan’s 3rd Largest EPC Contractor and Italian-Thai Development Plc., Thailand’s largest 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 the company. TTCL is the only Thai Contractor which has continuously achieved Net profits for over 26 years. The company’s track records cover over 190 projects, with combined project value of 60,000 million baht. Its expertise ranges from Chemical, Petrochemical, Fertilizer Plants, Oil & Gas to Power Plants for many recognized global customers and many large listed conglomerates such as PTT Group, SCG Group, Vinythai Group, Kao Group from Japan and German’s Bayer Group. The company has continued to win repeated businesses from its large pool of global customers who keep investing in building new industrial plants. With highly successful international record of over 30 international projects completed in the past 14 years, TTCL has international subsidiaries in Vietnam, Malaysia, Myanmar and USA. Its other main markets are China, Asian Countries, Middle East Countries and Africa.