Bangkok--20 Feb--MT Multimedia
CPT decided to pay out 100% of its net profit, at THB 0.14 per share, to the shareholders after posting THB 140.71 m in net profit for FY2017, a 16.15% rise, thanks to excellent sales growth in the power distribution panel and servicing segments and a punctual handover of power substation installation and construction works. Management forecasted at least 10% growth for FY2018, given the launch of a new plant and new products that will increase the opportunity to win new customers in both public and private sectors.
Mr Somsak Limprasert, chief executive (CEO) of CPT Drives and Power Public Company Limited (CPT), a boutique provider of competitiveness-enhancing electrical power solutions for machinery control, including electrical power control equipment and systems for industrial plants and power substation installation and construction services, revealed the decision taken by CPT's board on 19 Feb to declare dividends for the FY2017 (Jan-Dec'17) results to the shareholders at THB 0.14 per share (or 100% of the net profit, higher than the minimum 40% rate set by CPT's dividend policy), with the Record Date on 6 March and the payment date on 27 April 2018.
The 100% payout decision followed the announcement of impressive FY2017 results, with a net profit of THB 140.71 m, up 16.15% YoY (from THB 119.33m) and a total revenue of THB 1.23929bn, a marginal YoY drop (from THB 1.24044bn). In terms of revenue, the power distribution panel production and supply segment represented the highest share (56.67%), followed by the power substation installation and construction segment (20.56%). The results reflected CPT's business strength.
CPT achieved a sustained growth in the power distribution panel production and supply segment by winning orders from sugar millers, which formed CPT's main group of customers, for replacement products to enhance their production capacity for the FY2017/18 milling season and constantly improve machinery performances, in order to reduce energy costs and use excess power for production and supply of electricity to public-sector organizations. It also successfully delivered power substation installation and construction services to industrial plants and efficiently managed the associated operating costs.
"We promised the shareholders that, after the listing on the stock market, we would pay out 100% of the FY2017 net profit to provide returns to them and preserve their confidence that our business plan will bring about regular revenue and net profit growth", he said.
The CEO added that CPT seeks to maintain a decent growth level in FY2018. It has enhanced its competitiveness through the construction of a new plant for production of world-class power distribution panels that satisfy high safety standards, which will increase its opportunity to attract new customers in both public and private sectors in addition to the existing ones (who are predominantly sugar millers). It expects the said main group of customers to contribute to approx THB 550m in revenue this year. It has also presented to sugar millers new products as replacements for their existing equipment (eg large-motor-controlled panels for distribution of power to machines), with an average total contract value of approx THB 300m per year. This is exclusive of revenue from other groups of customers (including those in the cement, rubber, steel and paper industries), which are also projected to promote growth.
For the power substation installation and construction segment, CPT is ready to submit bids for more than 10 projects involving construction of 30MW power substations for both public- and private-sector organizations, and expects to win six projects worth a total of approx THB 420m in revenue that would be recognized in FY2019 and FY2020.
As for overseas expansion, CPT is working to complete the establishment of sales offices in three Asean countries, ie Vietnam, Philippines and Indonesia, by this yearend to facilitate the process of offering products and services that meet the demand from local sugar millers.