FTE reports a positive outlook for the fire protection system installation industry in Q2/2022, having secured contracts worth 93.6 million baht and aiming to acquire an additional 150 million baht, supporting a backlog of 470 million baht. This is expected to drive revenue growth of 20%, targeting 1.2 billion baht while maintaining a net profit margin of no less than 8%. In Q1/2022, the company reported revenue of 238.64 million baht and a profit of 6.74 million baht.

Mr. Thaksin Tantiphaijit, CEO of Firetrade Engineering Public Company Limited (FTE), a leader in importing and distributing fire protection systems, design services, installation, repair, and inspection, revealed that the overall outlook for the fire protection system installation industry is expected to improve starting from Q2/2022, as both public and private sectors have been gradually increasing their investments since the beginning of this year.

In Q2/2022, the company has already secured contracts for the procurement and installation of fire protection systems totaling over 93.6 million baht, including projects for the Electricity Generating Authority of Thailand (EGAT) and various industrial plants.

Additionally, the company is participating in bids and proposals for the procurement and installation of fire protection systems for both public and private sectors, with a total value of over 300 million baht, expecting to secure around 150 million baht in contracts. Currently, the company has a backlog of approximately 470 million baht, divided into 320 million baht for fire protection system design and installation and 150 million baht for distribution.

“The company continues to focus on diversifying its project portfolio across various industries while enhancing project management efficiency in terms of quality and installation timelines, alongside cost management and expense control. If the company can execute its plans and deliver projects on schedule, we believe we can achieve our target of 20% revenue growth, or 1.2 billion baht, while maintaining a net profit margin of no less than 8%,” Mr. Thaksin stated.

For Q1 2022, the company reported total revenue of 238.64 million baht, a decrease from 261.64 million baht in the same period last year, with a net profit of 6.74 million baht, down from 12.48 million baht year-on-year.

The slight decrease in revenue was due to contractors delivering projects later than scheduled, and at the beginning of this year, the company received contracts with lower values. The decline in net profit was attributed to the company setting aside provisions for expected credit losses (doubtful debts) amounting to 13.40 million baht due to delayed payments from clients. However, the company is accelerating its debt collection management and enhancing the credit assessment process for customers.

Meanwhile, the company achieved a gross profit of 58.73 million baht, an increase of 0.15 million baht compared to the same period last year, resulting in a gross profit margin of 24.86%, up from 22.43% in the previous year, due to improved cost management of goods.