Bangkok--23 Mar--Penettrate PR
Build 2 Ethanol Plants, for Petro Vietnam and Japanese Group
Expect Continuous Business Growth after being Crowned EPC Contractor Champion in Thailand 2-year in a row!
Toyo-Thai Corporation Plc. or TTCL, Thailand’s only EPC Contractor wins 2 large Ethanol projects in Vietnam total worth 120 million USD. Company continues expanding internationally, ignoring Map Ta Phut effect.
Khun Suvit Manomaiyanon, Toyo-Thai Corporation Plc.’s Vice President and General Manager, Sales & Contract Division, reveals that the company is awarded letters of intent to build 2 ethanol plants in Vietnam. First project is from Petro Vietnam, the largest Oil & Gas & Petrochemical group in Vietnam and the second is from a Japanese investment group. The combined project value is 120 US$ Million with each project worth 60 US$ Million. With these 2 projects, TTCL now has a backlog of over 10,000 million baht and can realize the revenues this year onwards. Both ethanol plants will be located at Binh Phuoc province and Dak Lak province, about 100 kilometers and 250 kilometers from Ho Chi Minh City, respectively. The project is scheduled to start this year and to complete in 2012. Each plant has a production capacity of 300,000 liters of ethanol per day, with the output to be used for producing Gasohol for Vietnam market.
“There are a few good reasons that enable TTCL to win both projects. First, TTCL has over 13 successful years of experiences in building large EPC plants overseas including in Vietnam. In addition, Toyo-Vietnam, its local subsidiary, can also play strong supporting roles in implementing the projects. Toyo-Thai has focused its efforts in bidding International EPC projects to fuel its business growth because it can earn higher margins from international projects. Besides, the company has some competitive advantages such as price advantage due to the lower salary base of Thai engineers compared to overseas engineers. In addition, the company has proven international experiences and know-how that clients can rely on. This international expansion strategy also prevents the company from being affected by Map Ta Phut situation, as their projects there are almost 100% completed and realized.
TTCL become the most successful contractor with Highest Net profits in Thailand for 2 consecutive years. Its net profits in 2009 reach 327 million bahts, while it still has a lowest PE (price-earning) ratio of 9.44 times, lowest in contractors sector. However, TTCL pays highest dividend of 35 satangs per share or 50.33% from its net profits, yielding an attractive 5.31%.
(Second-half dividend of 19.40 satang will be paid on April 30). In addition, TTCL also has Highest ROE at 23.71% and highest EPS at 78 satang per share, in contractor sector. In 2009, its gross margin increased 21.30% to 883 million baht, from 728 million baht in 2008, while its net margin also jumped 14.3% from 2.8% in 2008 to 3.2% in 2009. With its main revenues from engineering and construction standing at 10,240 million baht in 2009, the company has about 2,700 million baht in cash and short-term investment on hand without any debt-bearing debts. This year, TTCL plans to bid many projects with a combined value over 39,000 million baht and expects to be awarded many projects.
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. 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 and Ube Group from Japan; German’s Bayer Group and Belgium-based Solvay Group. Its main markets are Vietnam, where it has an operating subsidiary, China, Asian Countries, Middle East Countries, Africa and USA. The company now employs the largest number of engineers in Thailand, i.e. 817 engineers from a total headcount of 1,563 persons.
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