Bangkok--15 Jul--CH. Karnchang
Mr. Plew Trivisvavet, President of CH. Karnchang Public Company Limited (CK), revealed that CK’s backlog to be realized at the end of the second quarter amounted to Baht 115,234 million, which would secure CK’s solid and ongoing revenue recognition for 5-6 years. Such backlog comprises 32.47% and 67.53% from public and private sectors, respectively. In addition, there are three contracts to be signed, e.g., the supply and installation of the M&E Systems in the MRT Purple Line Project for BMCL worth Baht 20,775 million; the Bang Pa-in Power Project, Phase 2, worth Baht 5,000 million; and the PWA pipeline project in Lampang Province, worth Baht 658 million. These three projects would add approximately Baht 26,000 million to CK’s backlog, bringing the total backlog to more than Baht 140,000 million, the highest value in its history. Other contracts currently in the bidding process include a PTT gas pipeline project worth more than Baht 9,000 million, the Green and Pink Line Projects and Dual Trackwork Project of the SRT, and most importantly, the concession to be operated by CK for the Nam Bak Hydroelectric Power Project in the Lao PDR, worth more than Baht 17,000 million.
CK’s construction revenue in the first quarter of 2013 amounted to Baht 8,092 million, representing an 89.31% increase from the first quarter of 2012, with total revenue of Baht 14,506 million. CKP’s planned trading on the Stock Exchange on this July 18 would allow CK to realize revaluation gains in CKP. For the entire year 2013, CK’s total revenue is expected to exceed Baht 36,000 million, of which Baht 30,000 million derives from the construction business, which is the highest in its history of more than 41 years of operation. Its gross profit margin would be approximately 8-10%.
Mr. Plew confirmed that CK’s financial position is currently strong and that no capital increase is necessary. CK’s debt to equity ratio stays as low as 1.47 times, with more than Baht 16,000 million of shareholders’ equity. CK is capable and well-equipped to carry out a great number of construction and investment projects, both for the public sector and for concessions invested and operated by CK. Unlike other general construction companies, CK is thus growing its revenue without mainly relying on public sector projects. At present, CK is studying various concession and infrastructure construction projects, namely, hydropower projects, alternative energy projects, water supply and production projects in Myanmar and Laos, in which countries CK has gained a lot of experience and expertise, and they are expected to bring success in generating the company’s revenues and returns.