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Published on July 17, 2007

TKS Technologies (TKS) expects to achieve its 2007 sales target of Bt12 billion on anticipation that the general election late this year will boost its printing revenues.

TKS is in the printing business, while subsidiary Synnex (Thailand) runs the computer-equipment and software-wholesaling operations.

TKS chairman Supant Mongkolsuthree yesterday told reporters he was confident that this year's sales-revenue target would be reached, because the general election would provide a boost to the printing industry.

Also, His Majesty the King's 80th birthday celebrations late this year should also help the printing industry, he said.

Although first-half sales revenues from the company's printing business were flat year on year, the outlook for the second half is quite bright, Supant said.

If the 2007 sales target is achieved, it would represent growth of 13.74 per cent from last year's Bt10.55 billion.

He said higher-than-expected sales in the computer-equipment business had helped maintain the company's overall revenues.

"In the first half of the year, growth in the computer and equipment business was greater than expected, because more people shifted to innovative products like

liquid-crystal displays and personal digital-assistant phones. This helped the company's first-half earnings remain in good shape, even though the printing business was flat," he said.

Supant said the company would list Synnex on the Stock Exchange of Thailand (SET), with the initial public offering (IPO) scheduled for early next year.

The company is now selecting its financial adviser for the IPO, he said.

Once Synnex is listed in the SET's communications sector, TKS will be traded in the publishing and printing sector, said Supant.

At present, the printing business accounts for about 10 per cent of the company's overall sales revenues but fully half of the company's net profit.

Although the computer and equipment business adds up to 90 per cent of total sales revenues, it contributed only 1 per cent of total net profit.

Supant estimated the company's gross profit would be about 10 per cent, an improvement over last year.

The gains will come primarily from the baht appreciation, because almost 50 per cent of Synnex products are imported.

Siriporn Chanjindamanee

The Nation