Ch Karnchang Plc aims to win bids worth over Bt354 billion in the second half of this year, targeting total revenue of Bt30 billion by the end of this year, according to the company’s chief executive officer, Supamas Trivisvavet.
Meanwhile, the company has continued to expand overseas investments that focus on Laos and Myanmar.
Investments in Myanmar will focus on construction infrastructure and electricity after the company’s success in investing in additional hydropower plants in Laos, Supamas said in a recent interview with the Nation.
She added that in the first half of this year, the company won bidding for construction infrastructure projects worth Bt50 billion, meeting the company target. This boosted its backlog of projects under construction to Bt135 billion. The projects will generate income for the company from this year until 2021.
Some bids won in the first half of this year will result in commencement of construction in the second half. They will boost total revenue growth and enable it to achieve this year’s target, Supamas said.
In the first quarter of this year, Ch Karnchang Plc announced total revenue of Bt8.54 billion and net profit of Bt301.86 million. Last year’s reported revenue was Bt47.59 billion, with a net profit of Bt2 billion.
Supamas added that the construction industry expects better results in the second half of this year compared with the first half. Most infrastructure projects start construction in the second half, while bidding is in the first half.
“We are also confident that the construction business will improve in 2018. Most infrastructure projฌects with signed agreements this year, will be in fullscale construction in 2018,” she said.
She added that the company did not face a labour problem with the exodus of tens of thousands of forฌeign labourers from neighbouring countries when the new Labour Act was passed.
“We have subcontracted to provide labour for our construction projects, and construction is ongoing, following the schedule,” she said.
For overseas plans, Supamas says Laos is the company’s first investment priority, with a focus now on the Xayaburi hydropower project.
The company is also considering expansion in Myanmar, folฌlowing its first project investment last year, in tap water.
“In Myanmar, we continue to focus on construction of the country’s infrastructure projects and electricity. They are going through a study process and we expect to win the bidding for construction infrastructure projects in Myanmar as soon as possible,” she said.
Asean provides great potential for business expansion, particularly the CLMV (Cambodia, Laos, Myanmar, and Vietnam) nations. All the CLMV zone nations have had growth in gross domestic product in excess of five per cent yearly, and are expanding investment in infrastructure to serve long-term economic growth. This offers potential for Thai companies to expand their investment in this region, Supamas concluded.