Bangkok--21 May--Penettrate
IPO set for June as its EPC contractor business expands strongly
Toyo-Thai Corporation Plc., The First & Only Thai Integrated Engineering Contractor reports a highly positive result for the first quarter this year. It net profits grow a tremendous 53% to 140.08 million baht and revenues jump 98% to 4,068.34 million baht. Its result is a rare positive sign as most large general contractors face stiff business decline.
Mr. Hironobu Iriya, President & Chief Executive Officer (CEO) of Toyo-Thai Corporation Public Company Limited (TTCL) reveals “The company is pleased to report that we can deliver a strong and continuous business growth during the economic recession. With net profits growing 53% to 140.08 million baht from 91.07 million baht in the first quarter last year, its revenues reaches 4,068.34 million baht, a 98% jump from 2,053.35 million baht in the first quarter last year.
“There are many factors contributing to our success during this recession. First, we have won many large-scale projects and have delivered them effectively and on time. Our EPC business is a profitable and lower-risk business model and the EPC market has been expanding with demands in Chemical and Petrochemical industries. In addition, the company is the only Thai EPC contractor with high capability and lower cost structure and has many large customers on hand. This quarter’s revenues are very high because we have achieved lots of progress in many projects, so we can realize large sums of revenues. After realizing 4,000 million baht this quarter, we still have a remaining backlog of 7,300 million baht. Moreover, the company plans to bid for many projects worth 39,000 million baht in 2009-2010.” Khun Iriya explains.
“The company will offer 130 million common shares for Initial Public Offering (IPO) or 27% of registered shares for investors and go public next month (June). We will become the first company to list shares in Thailand’s Stock Exchange this year. And we are confident that our stocks will receive strong interest from both institutional and retail investors because we are a leader in the profitable EPC contractor business. Besides, we have large customer base and excellent business results throughout the past 20 years. (2008 revenues of 11,049 million baht and net profits of 314 million baht, a sharp 141% and 124% jump in revenues and net profits from 2007, respectively. The company grows an average 48% per annum during 2005-2008.) The company also has solid financial status with over 4,000 million baht of cash on hand and has no interest-bearing debt. For 2008, it had the highest ROE in contractor sector of 46% and for the first quarter of 2009, it has an EPS of 0.43 baht.” Suvit Manomaiyanon, Director and General Manager, Sales and Contract Division explains.
“The fund from IPO will be used to increase the company’s capacity in undertaking world-scale projects worth 10,000-17,600 million baht (300-500 Million US dollars) per project. In addition, it will be used in further international expansion, especially, in Asian and Middle East countries. With 12 years overseas experiences, the company has been highly respected with its strong capabilities to deliver a world-class quality at lower cost structure. By becoming a public company, the company will also strengthen its corporate image in the view of overseas customers.” Khun Suvit comments.
Founded in 1985, by Toyo Engineering (JAPAN), a leading Japanese EPC Contractor and Italian-Thai Development Plc., Thailand’s largest general contractor, Toyo-Thai Corporation Plc. has a registered capital of 480 million baht; with paid-up of 350 million baht. The company now employs the largest numbers of engineers in Thailand; 817 engineers from a total headcount of 1,563 persons. The company’s track records cover over 160 projects in 24 years, with combined project value of 60,000 million baht. Its local customers include many large listed conglomerates such as PTT Group, SCG Group, Vinythai Group, Kao Group from Japan and German’s Bayer Group. Its international projects for the last 12 years generated a combined 6,000 million baht. Its main markets are Vietnam, where it has an operating subsidiary, China, Asian Countries, Middle East Countries, Africa and USA.
For more information, please contact
Penettrate Co.,Ltd. Tel 02-681-5305-7 Fax. 02-681-5317
Khun Grantarit ([email protected])
Panistha ([email protected])