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CK ready for domestic, overseas mega projects Sustainable growth driven by group synergy

Strong 2018 performance of Baht 31 billion revenue, Baht 2.49 billion net profit,
credit rating improved to A level
Ch. Karnchang Plc (CK) will focus its efforts in bidding for large construction projects in both domestic and foreign markets, leveraging on the group’s extensive expertise, especially in managing large and highly complicated projects. The company sets revenue target for 2019 at Baht 25 - 30 billion baht and aims for construction projects in Eastern Economic Corridor (EEC). The company considers its leadership in the market, confidence in strong business backed by credit rating upgrade to A level by TRIS Rating and positive trend in the construction industry.
Plew Trivisvavet, Chairman of the Board of Ch Karnchang Plc (CK), said that the company will continue to focus on strengthen CK business leveraging on its subsidiaries’ diverse strengths in infrastructure development, including rail, road, energy and water supply system. Its subsidiaries include Bangkok Expressway and Metro Plc (BEM), CK Power Plc, and TTW Plc respectively. Such diverse business is key to generating constant income and dividend payment to the company, which also increases CK’s risk management efficiency and business flexibility amidst industry changes and fluctuation. With its strengths, support from subsidiaries and expertise in advanced construction technology, CK concretely maintains its leadership and capability to participating in bidding for mega construction projects in Thailand and overseas.
Supamas Trivisvavet, Chief Executive Officer, Ch Karnchang Plc (CK), said: “We are confident to maintain growth momentum this year considering Baht 48,965 million backlog. We aim to generate Baht 25 billion – 30 billion, considering positive growth trend in the industry for the next few years. To achieve this goal, we will focus on 3 major areas – infrastructure projects in Thailand, EEC, and overseas investment.”

For Thai infrastructure projects, it is expected that a number of projects that are ready for calling bids and public private partnership projects worth Baht 1.77 trillion baht will be available this year. They include the Baht 179.412-billion Thai-Chinese high-speed train project phase 1 from Bangkok-Nakhon Ratchasima, Baht 143-billion MRT orange line – Cultural Center-Bang Khun Non, and Baht 30.437-billion express way – Rama 3-Dao Khanong, Baht 84.6-billion motorway Bang Pa-In – Nakhon Ratchasima, Baht 55.62-billion motorway Bang Yai – Kanchanaburi, and Baht 397.084-billion  SRT Double Track Phase 2 in 9 routes.

The second focus is on EEC investment projects. Most of such projects are jointly developed by the government and private sectors, such as high-speed train project linking Suvarnabhumi, Don Mueang and U-Tapao airports worth Baht 224.544 billion and the U-Tapao airport expansion project worth Baht 200 billion. The company has been monitoring these project progress closely.

The third portion is overseas investment. CK will focus on Asian countries, especially infrastructure projects under PPP model. CK is particularly interested in low-risk projects with potential to generate significant returns.  At present, the company is studying the different investment avenues in 400 million USD expressway construction in Yangon, Myanmar, and water supply system development in Sri Lanka. Additional hydroelectric power project in Laos that CK Power is in discussion with Laos government is expected to see progress shortly.

In 2018, CK reported total income of Baht 31,176 million as planned, net profit on equity of Baht 2,494 million, and gross profit margin at 7.92 %.

Another significant progress is the corporate credit rating upgrade by TRIS Rating from “A-“ to “A” with Stable” trend. The rating improvement has proven the company’s leadership in Thailand’s construction industry and confirms the company’s right strategy in expanding investment in subsidiaries that generates constant income and strong returns on investment while mitigating risks from industrial fluctuation and reducing risks.

CK has also won high recognition and confidence from investors and capital market proven by the Thailand Sustainability Investment 2018 (THIS) award from the Stock Exchange of Thailand, “Excellent” rating for the 4th consecutive years at the Thai Institute of Directors’ Corporate Governance Report 2018, and Best Investor Relations Award at SET Awards 2018 jointly held by SET and Money & Banking magazine.

In terms of project progress, the company has achieved significant progress in all projects. As of April 2019, current project progress is:
  • Xayaburi Hydroelectric Power Project in Laos valued Baht 135 billion: 93% progress and will be commercially operated by the final quarter of this year
  • MRT – Blue Line (extension), contract No. 2: 99% completed
  • MRT – Blue Line (extension), contract No. 6: 60% progress
  • MRT – Orange Line (Thailand Cultural Center-Min Buri), Contract No. 1, 2 and 5: 20% completed

CK will continue to operate its business with commitment to sustainability and under “The Power of Synergy” concept, focusing on integrating strengths from all subsidiaries to increase competitiveness in both domestic and overseas markets, to effectively manage business risk, and to strengthen ability to generate more income from construction project and investment in infrastructure development concession projects through its subsidiaries, which strengthen the company’s financial security and ability to deliver high-quality work as scheduled.