Bangkok--16 May--Penettrate
- 80% Revenues from International projects- Refinery, Mining and Steel Structure
- Financial Advisor confirms SRICHA has high potential and strong results
Sriracha Construction launches its IPO Plan to list in SET. Specialized in Steel Structure, Piping and Tank construction for large industrial plants, the company reports a high 42.5% net profit margin.
Mr. Boonkrua Khemapirat, Sriracha Construction Plc.‘s Managing Director reveals that he co-founded the company with a large group of senior engineers with over 20 year experiences. It focuses on constructing large industrial plants such as Oil Refinery, Power Plants, Petrochemical plants, Mining Plants in Thailand and overseas countries. This work requires special skills and expertise which concerns many factors such as heat pressure and erosion, as they are important parts of the plant. The company has a registered capital of 310 million baht, with 225 million baht ull-paid capital.
Mr. Gridsada Pothisomporn, Deputy Managing Director of Sriracha Construction Plc. says that the company has various areas of expertise, namely, 1. Steel structure 2. Piping Construction and installation 3. Tank and machinery construction and installation 4. Machinery Maintenance and Repairing. The company has completed over 50 projects such as Mining Plants in Madagascar worth 7,500 million baht; ExxonMobile Refinery in Singapore worth 950 Million baht. Previously, SRICHA has constructed a Oil Refinery for Thai Oil Plc. worth 1,440 Million baht, Esso Oil Refinery work worth 200 million baht in Cholburi and a Qatar’s Oil Refinery worth 600 million baht.”
“With a capacity for steel structure construction of 20,000 tons per year and 1,000,000 db per year for Piping construction and erection, the company has major strengths in its highly experienced engineering team with over 20 years experiences in constructing large industrial plants. The company has strong records of on-time project completion and high safety standard. Therefore, it has been trusted by many large world-class contractors such as Foster Wheeler and Bechtel from the USA and JGC from Japan. It also boasts world-class companies as loyal customers such as ExxonMobile, the world’s largest Oil & Gas Company, Thai Oil Plc., Esso (Thailand) Plc., Bayer Group, Indorama Group and Thai Beer group. The company has been awarded most of its projects directly from these project owners.
Mr. Chatmongkol Khemapirat, Assistant Managing Director of Sriracha Construction Plc. says that “ In the past 3 years, the company has achieved a cumulative annual growth rate of 22.5%. Its revenues rises to 2,981 Million baht in 2011, from 2,383 Million baht in 2010 and 1,975 Million baht in 2009. Meantime, it has a High Gross Profit Margin of 58% and Net Profit Margin of 43% (Average 3 years). Its Net Profits rises to 1,267 million baht in 2011, from 1,195 million baht in 2010 and 720 million baht in 2009. Its Gross profit margin and Net profit margin are probably the highest among the Thai contractor companies. This results from the fact that there are high demands for company’s specialist services while there are only a few players in the market. In addition, the company has undertaken many overseas projects which provides higher margin and has planned to continue in this market to generate good return for investors.”
“SRICHA has maintained its strong financial condition. For 2011 Fiscal year, it has achieved a 101.8% Return on Equity (RoE) and 53.3% Return on Assets (RoA). It has a debt/ equity ratio of 0.7 times with no interest-bearing debt and a cash on hand of 800 million baht. With strong positive cash flow from operation, the company has a dividend payout policy of more than 50% from its net profits. For the IPO, the company will offer 78.25 million shares, with a 1-baht par value, to investors. The proceeds from the IPO will be used to expand its fabrication facilities, acquire new machinery and equipment as well as increase its working capital.” Mr. Chatmongkol summarizes.
Ms. Busaraporn Chanchoocherd, Senior Vice President, Kasikorn Securities Plc., its financial advisor, opines that Sriracha Construction Plc. is one of the few mechanical construction contractors with strong reputation and proven experiences. It has strong management and engineering teams widely accepted in the international markets.
In addition, it has combined large fabrication facilities with large steel structure and piping construction capacity with over 20-year large-scale experiences in both domestic and international markets. Its customers cover both large global and regional firms and world-class contractors. Therefore, we are confident that SRICHA will receive warmth welcome from the investors.