CK celebrates 45th anniversary with strong Q3 2017 performance, expressing readiness to participate in bidding for new infrastructure projects and emerge as regional leader

Real Estate Press Releases Wednesday December 20, 2017 13:33
Bangkok--20 Dec--Ogilvy Public Relations

Ch. Karnchang Plc (CK) expected a total revenue of Baht 35,000 million in 2017 as targeted and celebrated its 45 years in business with continued commitment to investment in projects that benefit the country and society, a strong focus on engineering and construction technology to strengthen its competitiveness in the future and emerge as a leading infrastructure developer in the Southeast Asia region, in line with the government's policy to drive the country forward according to Thailand 4.0 policy.

Plew Trivisavavet, Chairman of the Board of Ch Karnchang Plc (CK), said that "Looking ahead in 2018, we are keen on investing in new projects initiated by the government with full readiness in human resources, engineering and construction technology to reduce construction cost and time, as well as finance. With our debt to equity ratio now reduced to accommodate for new investment in the future, coupled with investment portfolio restructuring, our subsidiaries have stronger financial strength and growth potential. These reflects our accurate, long-term vision and commitment to continued development of the country's infrastructure in order to enhance the country's competitiveness in the global arena, as well as bringing optimal benefits to the Thailand and Thai people in a sustainable manner, in embracing the government's Thailand 4.0 policy.

"The strong performance of our construction business and the result of portfolio restructuring reflect the principle that our company adheres for 45 years in business. We strive to invest in projects that bring benefits to the country and Thai people, with focus on infrastructures which are fundamental to the country's development, such as motorway, expressway, mass transit system, water resource and energy," added Plew.

According to Supamas Trivisvavet, Chief Executive Officer of Ch Karnchang Plc (CK), the company managed to maintain its strong competency in revenue and profit generation in Q3 2017. Revenue from construction business is Baht 8,758 million, while the total revenue is Baht 9,266 million, with gross profit margin of 7.85%, net profit of 6.75% and debt to equity ratio of 1.35 times. Revenue from construction business for entire 2017 is expected to reach Baht 35,000 million. Ongoing projects are progressing as planned, for example, Xayaburi Hydroelectric Power Project is currently 82.5% and SRT Double Track Railway - Chira to Khon Kaen is now 42% completed.

CK's current backlog is Baht 78,000 million. In 2017, the company acquired 7 new projects comprising the Modification Works of Booster Pump Station (TTW Public Company Limited) worth Baht 303 million, MRT Orange Line - Contract 1 (Underground) worth Baht 11,570, MRT Orange Line - Contract 2 (Underground) worth Baht 12,060 million, MRT Orange Line - Contract 5 (Depot and Park & Ride) worth Baht 2,709, Motorway Bang Pa-in – Nakhon Ratchasima, Contract 4 worth Baht 1,852 million, MRT Blue Line Extension M&E worth Baht 19,643 and Connection Si-Rat – Outer Ring Road Expressway and Si-Rat Expressway (heading to Chaeng Watthana Road) worth Baht 275 million. The total value of projects in 2017 is Baht 48,412 million.

"With corporate financial restructuring we have conducted for the past five years, our subsidiaries now have adequate financial strength to participating project bidding themselves without the need for financial support from CK. CK also has stronger financial readiness with a substantial decrease of debt to equity ratio due to the restructuring. Our future focus continues to be mass transit system and expressway, both underground and elevated system, which are our areas of expertise," added Supamas.

The government is expected to expedite several infrastructure projects in 2018. CK is keen to participate in bidding for these projects, such as MRT Purple Line – South (Tao Poon – Rat Burana) worth Baht 130,000 million, MRT Blue Line – Extension (Bangkae - Phutthamonthon Sai 4) worth Baht 21,197 million, MRT Orange Line (Thailand Cultural Center – Taling Chan) worth Baht 85,000 million, MRT Green Line (Samut Prakan – Bang Pu and Kukot – Lamlukka), 3rd Stage Expressway N2 Kaset Nawamin, and SRT Double Track Phase 2 in 9 routes worth totally over Baht 90,000 million, as well as new hydroelectric power plant in Loas. CK expected to win approximately 20-25% of these projects.

"CK celebrated 45 years in business in 2017. Our roadmap for the next 5 years still focus on domestic construction business. Construction industry continues to see a strong growth as infrastructure development remain key focus for the government. For overseas business, we focus on energy projects in AEC countries especially Myanmar and Laos. In addition, we continue to strengthen our readiness in engineering and construction technology, human resources, finance and partnership, with aim to increase cost efficiency, productivity and competitiveness to support new project development in the future," added Supamas.

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