Kingsmen CMTI banks on overseas results
THAILAND-BASED Kingsmen CMTI Plc is stepping up its services in Myanmar and Cambodia, amid business expansion by both Thai and foreign investors in the two countries, said Sunisa Ratnanenya, the company’s deputy managing director/exhibitions and museum, alternative marketing architecture and engineering.
The company is a provider of integrated solutions covering a full range of services from ideation, research/design, consultancy, project management and prototyping to fabrication, implementation/installation, construction, logistics support and after-sales services
It is a joint venture between Singapore-based Kingsmen Group, a 10 per cent stake holder and Thailand-based CMTI Co Ltd, which owns 90 per cent of the company.
Globally, Sunisa said the Kingsmen Group has invested in 21 countries, including China, Japan, South Korea, India, Taiwan, Malaysia, the US, and some Middle East countries. Kingsmen CMTI Plc is expanding in Myanmar and Cambodia on its own, catering to the growing demand for decoration exhibitions and interior design work at commercial properties such as luxury hotels, retail premises and office buildings in the two countries. The Myanmar and Cambodian governments have offered incentives and widened access to foreign investors.
Kingsmen CMTI made its entry into Myanmar five years ago, setting up a subsidiary with a registered capital of US$300,000 (Bt9.37 million).
The company generated Bt27.5 million in total revenue at the end of 2018, a jump of 43.97 per cent from Bt19.1 million in the previous year.
Most of its customers in Myanmar are Thai investors planning to expand their hotel and retail portfolio in the country, accounting for 80 per cent of the company’s total revenue with income from decoration and design of exhibition booths making up the balance. In Cambodia, the company established Kingsmen CMTI (Cambodia) Co Ltd last year with a registered capital of $300,000.
“We have strengthened our position in Cambodia with the new investment in view of Thai and global brands expanding their presence in the country, including Ralph Lauren, Starbucks, Pizza Company and S&P.
The openings of new business premises will come with growing demand for the company’s services in the areas of decoration, construction and design,” Sunisa said.
Nontwaris Jatepiyawat, director of Kingsmen CMTI (Cambodia) Co Ltd said the company generated total revenue of Bt8 million in its first year of operation. It is looking to achieve Bt20 million this year and Bt30 million in 2020 amid strong growth in major Cambodian cities Phnom Penh, Siem Reap, and Sihanoukville.
With the expansion in Myanmar and Cambodia, Kingsmen CMTI Plc recorded total revenue of Bt2.13 billion at the end of last year, an increase of 86.8 per cent from Bt1.14 billion for 2017.
“The surge in revenue can be attributed to our robust business performance in Thailand and overseas,” Sunisa said.
Jirawuth Suwanna-arj, director/minister counsellor (Commercial) of International Trade Promotion Department of Commerce Ministry, said foreign direct investment in Cambodia has been growing strongly since 2013.
In 2017, the country got $629.7 million in foreign direct investment, up 9.12 per cent from the previous year.
Foreign investment reached $113.9 million in the first quarter of the year, a 33.63 per cent increase from same period year-on year, according to a report from the Cambodia Investment Board.
“China was the first country to expand investment in Cambodia, followed by South Korea, and UK. Thailand ranked ninth in terms of foreign investments in the country.
Cambodia remains attractive to foreign investors although the EU will revise its GSP for the country this year,” Jirawth said.