"Our revenues next year are estimated at Bt4 billion to Bt4.5 billion. This is a conservative target, and our revenues could be higher than that," senior deputy managing director Watthana Samnawong was quoted as saying yesterday by Thai-language news agency Bisnews.

Watthana earlier predicted that revenues this year would be below Bt4.9 billion. Next year's revenue forecast is based on the firm's Bt9-billion backlog of work, which does not include newly signed contracts this year, she added.

The Bt9 billion is expected to generate revenues for the company over the next two years.

Commenting on the company's CIN Estate joint venture - set up to develop condominium projects - Watthana said it would start to contribute revenues to Nawarat Patanakarn from late next year.

The joint venture, in which Nawarat Patanakarn owns 40 per cent and Charn Issara Development the remainder, will develop condo projects valued at a combined Bt2.2 billion along Bangkok's planned electric-rail routes. Nawarat Patanakarn expects CIN Estate to offer a 20-per-cent return.

Meanwhile, United Securities has recommended that investors switch from investing in Nawarat Patanakarn to other sectors, given that rising construction-material costs have narrowed the company's gross margin.

The broker predicts the construction firm's revenues this year will stand at Bt4.67 billion. Its contract backlog is expected to decline, due mainly to the persisting political uncertainty. Revenues from government projects account for half the company's income.

United Securities has lowered its forecast for Nawarat Patanakarn's gross margin for this year to 5.25 per cent and cut its net-profit forecast for this year to Bt34 million.

It has also lowered its estimated fair value for the stock to 95 satang apiece.

In the second quarter, Nawarat Patanakarn swung back into the black with a net profit of Bt31.77 million, against a Bt137-million net loss in the same period last year.