Bangkok--21 Feb--K Plus PR
Chow was in top form in 2013, going through the Thai baht appreciation and political crisis yet emerging with an over 300% profit increase from 25.46 to 105.17 million baht. CEO Anavin Jiratomsiri reveals that this increase came from the growing demand for steel billet which led to its increasing price, the new income from its energy business, and good cost management. The company is confident that it will continue to grow from the expansion of its steel billet business and from the start of full business operations of its energy business.
Anavin Jiratomsiri, CEO of Chow Steel Industries Public Company Limited or CHOW, a SET-listed major steel billet manufacturer and distributor, announces the company’s 2013 performance, with 4,813.44 million baht total in revenue which is 464.27 million baht or 10.64% more than year 2012 at 4,349.17 million baht. As a result, the company’s net profit this year is 105.17 million baht, a 79.71 million baht or 313.09% increase from year 2012 at 25.46 million baht. The earnings are 0.13 baht per share, a 0.10 baht increase or 333.33% more than year 2012 when earnings were 0.03 per share.
Even though there were many factors that affected business growth last year, particularly the Thai baht appreciation at the beginning of the year and the unstable political situation at the end of the year, the company’s net profit grew significantly due to a rise in the steel billet selling price as it adjusted to economic conditions, and increased demand. Moreover, the company managed inventory stocks and procurement more effectively in 2013, resulting in a lower rate of increase in scrap cost vis-a-vis revenue growth.
The company’s selling cost increased to 400.58 million baht, up by 9.74%, while selling revenue increased to 457.84 million baht, up by 10.54%, which resulted in significant net profit growth. Also in 2013, income of 11.86 million baht came from investments and consulting services in the renewable energy field by its newly-formed subsidiaries.
“2013 was another year that the company reached its targets beautifully, with outstanding performance even under difficult conditions. The reason that Chow can do this, in spite of the price increase in steel billet. is good inventory stocks management and procurement, which is Chow’s strength. In addition, the company started posting income from its two subsidiaries, Chow International Co., Ltd. and Premier Solution Co., Ltd., which supported the company performance significantly” said Anavin.
He further noted that the company expects to continue to grow in 2014, with the demand for and price of steel billet projected to be high, coupled with consistent client orders. Moreover, the renewable energy business through its two subsidiaries has just fully expanded its business to Japan and will start receiving a full year of income this year, providing another source of company income.