9M/61 Financial Results of the Construction Contractor Group

            TerraBKK summarizes the financial results for the 9-month period of 2018 (9M/61) for the construction contractor industry, comprising 19 companies. It was found that the overall industry remains volatile, with average revenue fluctuating between -16.7% and 14.2%. Most companies reported an average revenue contribution of 63.9% - 82.7% of their total revenue for 2017. Italian-Thai Development (ITD) generated the highest revenue in the group, totaling 44,739 million THB. When categorizing the data into 4 groups based on total revenue, the details are as follows:


ITD – CK – STEC: The Top 3 Construction Contractors in Thailand


            The three major companies in Thailand reported revenues exceeding 10 billion THB for the 9-month period of 2018. Italian-Thai Development (ITD), a comprehensive construction contractor, achieved the highest revenue in the industry with 44,739 million THB. However, due to high costs and selling and administrative expenses, the net profit was slim compared to revenue, amounting to only 201 million THB, resulting in a net profit margin of just 0.45%. Meanwhile, Ch. Karnchang (CK) had a net profit margin of 8.51% with total revenue of 24,993 million THB (a decrease of about 19% from the same period last year), and Sino-Thai Engineering and Construction (STEC), which handles all types of construction work, reported a net profit margin of 5.33% with total revenue of 18,381 million THB.

NWR Revenue Grows 16.8%, Net Profit Increases 1.72 Times Compared to Last Year


            The financial results for the construction contractor group with revenue between 5,000-10,000 million THB showed that Navarat Patana (NWR) stood out the most in the 9M/61 period, generating total revenue of 8,016 million THB, an increase of 16.8% from the same period last year, resulting in a net profit jump of 1.72 times, turning a loss from the previous year into a profit of 349 million THB. The highest net profit margin in this group was achieved by Syntec Construction (SYNTEC) at 9.56%, a contractor serving both government and private sectors, providing services from foundation work to complete building construction.

EMC – PYLON – SEAFCO: 9M/61 Revenue Exceeds Full Year 2017 Revenue


            Despite the volatility in the construction contractor industry, three public companies with revenues between 1,000-5,000 million THB managed to exceed their total revenue for the full year 2017 in the 9M/61 period. These include Seafco (SEAFCO), a company specializing in pile drilling, foundation work, and general civil engineering, which reported total revenue of 1,933 million THB (2017 = 1,907 million THB); EMC, a company involved in general construction engineering and electrical and mechanical engineering, with revenue of 1,204 million THB (2017 = 710 million THB); and Pylon (PYLON), a foundation construction contractor, which not only achieved 9M/61 revenue of 1,053 million THB (2017 = 721 million THB) but also had the highest net profit margin in this revenue group at 14.96%.

Construction Companies with Revenue Below 1,000 Million THB Face Losses


            The last three companies in the construction contractor group, with revenues below 1,000 million THB, all reported losses for the 9-month period of 2018 (9M/61). STP and I (STPI) reported a loss of -479 million THB, BJC Heavy Industry (BJCHI) a loss of -159 million THB, and Sriracha Construction (SRICHA) a loss of -93 million THB. These losses were primarily due to declining revenues amid an economic slowdown, coupled with ongoing cost management issues, such as fixed costs that could not be reduced in line with the decreased workload, among other factors that affected direct expenses. ---TerraBKK

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