Q2 CK Recovers, Profit Increases by 156% Confident in Second Half Backlog Surpassing 100 Billion 

 

           Ms. Supamas Treevisvavet, CEO of Ch. Karnchang Public Company Limited (CK)CK announced the financial results for the 3-month period of Q2/2563, reporting a net profit of 63.7 million baht, construction revenue of 3,971 million baht, and total revenue of 4,450 million baht, with a gross profit margin of 9 % 

Ms. Supamas Treevisvavet stated that CK is confident that the company's performance has passed the lowest point in Q1/2563, as the company has already faced impacts from COVID-19 and drought. It is expected that starting from Q3/2563 onwards, the situation will return to normal. The results for Q2/2563 show a net profit of 63.7 million baht, an increase of 156% compared to Q1/2563, with a gross profit margin of 9 % and construction revenue of 3,971 million baht, which decreased by 26% from Q1/2563 due to the completion of the double-track railway project at Chum Thong Junction - Khon Kaen and the hydropower plant project at Sayaboury, which were delivered in 2562. Many projects are in the final stages, while new projects such as the Rama 3 - Dao Khanong - Outer Ring Road of Bangkok, Contract 4, and the Medical and Public Health Service Center Building at Chulalongkorn Hospital are in the early stages. The progress of ongoing construction projects is on target for all projects.

           In the second half of 2563, the company is preparing in all aspects to support the bidding for various projects, which is expected to resume as planned after the COVID-19 crisis begins to ease. It is confident that within the second half, new backlog values will definitely come in, especially for the Orange Line Electric Train project, Western Section, Bang Khun Non - Cultural Center, valued at over 120,000 million baht, with bids due on September 23, 2563. CK, in collaboration with BEM, will bid, leveraging its experience and expertise in constructing underground electric train tunnels and managing both underground and elevated electric trains for a long time.

           Additionally, there are several large projects that the government will continuously open for bidding, such as the Southern Purple Line Electric Train project, Tao Poon - Rat Burana, valued at 77,000 million baht, and three double-track railway projects that have passed the EIA, with a total value of over 180,000 million baht. For international projects, CKP is currently negotiating a new hydropower project in Laos, valued similarly to the Sayaboury project, and is confident that clarity will emerge within this year. These projects will help increase the backlog value by at least 150,000-200,000 million baht this year, from the current level of around 30,000 million baht.

           Regarding the company's performance in the group, Ms. Supamas added that “BEM is expected to see improved performance in Q3 due to the easing of lockdown measures, which has led to a continuous increase in traffic and passenger volume. In July, the traffic volume on the expressway returned to 92%, and the passenger volume on the MRT returned to 80%. The company expects that as restrictions ease further and educational institutions resume normal operations, traffic on the expressway and passenger volume will return to normal. TTW's performance is still good, providing consistent dividends. For CKP, in the second half of 2563, all power plants are expected to produce electricity above the set targets, as since June, the inflow of water into the reservoir of the Nam Ngum 2 hydropower plant and through the Sayaboury hydropower plant has increased accordingly. Furthermore, it is expected that the water volume will exceed the average of normal years.”