RT has announced its business plan for 2023, aiming for a 100% revenue growth and hoping for a turnaround. The strategy focuses on enhancing construction operational efficiency, managing costs and labor, accelerating the completion of existing projects, and taking on new projects at realistic cost prices. The company plans to increase its share of international work, supporting a new backlog record of 11.4 billion baht. They are partnering with allies to strengthen their project acquisition capabilities and preparing a 300 million baht investment budget to purchase specialized machinery and develop construction innovations to reduce pollution.

Mr. Chawalit Tanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering and geotechnics, revealed that the company aims for a 100% revenue growth in 2023 and expects to return to profitability in the second half of the year.

Mr. Chawalit Tanomthin, CEO of Right Tunneling Public Company Limited (RT)

The company is focusing on strategic plans to enhance construction operational efficiency for timely project delivery. Additionally, it continues its cost management strategy from the previous year, monitoring price trends and aligning purchasing plans with the situation to mitigate risks from material price fluctuations. The company is also collaborating with construction partners to reduce construction costs and increase future project acquisition capabilities.

Currently, the company is recognizing revenue from various construction projects, including the tunnel construction for the double-track railway project in the northeastern region, the Mae Taeng-Mae Ngat water diversion tunnel project in Chiang Mai, the water diversion tunnel project along the Mahasawat Canal from the Mahasawat water production plant to Ratchaphruek Road, the drainage tunnel project at Klong Thawi Watthana, the construction of underground electrical conduits in conjunction with the Yellow Line electric train project, the construction of highways in Na Thawi, Songkhla, and the double-track railway project from Den Chai to Chiang Rai and Chiang Khong.

Furthermore, the company plans to increase its participation in government project tenders, building on its role as a subcontractor, focusing on large-scale national infrastructure projects and private projects with shorter execution times to ensure continuous revenue recognition. The company is taking on projects at construction cost prices that reflect reality to enhance profitability, with this segment accounting for 90% of all work.

In terms of international projects, the company aims to increase its share of international work to 5-6%. Currently, it is involved in civil engineering for permanent structures in the construction of the hydropower plant project in Luang Prabang, Laos, valued at 1.615 billion baht, with Luang Prabang Power Co., Ltd. as the project owner and Ch. Karnchang (Laos) Co., Ltd. as the contractor. The company is also monitoring the situation to take on more international projects, especially in CLMV countries.

As a result of these operational plans, the company has a total backlog value of 11.4 billion baht, marking a new record since its establishment, with revenue recognition expected in 2023-2024.

The company has set an investment budget of 300 million baht to prepare for new projects requiring specialized tools, including the purchase of equipment, vehicles, and other construction-related items.

Additionally, the company plans to develop innovations to reduce pollution in construction areas by collaborating with Chiang Mai University to develop large electric vehicles for use in the construction industry, particularly for tunnel construction, to reduce transportation fuel costs and sustainably minimize pollution in construction zones. This is expected to be implemented in construction areas by the third quarter of 2023.

“Overall, the construction industry is expected to improve this year due to economic expansion, with large-scale government construction projects being the main driving force, alongside private sector investments to support the tourism sector, which is recovering after lockdown measures have eased in many areas worldwide. Additionally, the demand for relocating industrial production bases from abroad to Thailand positively impacts both the industry and the company. We are confident that this year will yield strong operational results,” Mr. Chawalit stated.

The company's revenue breakdown by project type includes tunnel construction (55%), dam and irrigation system construction (13%), hydropower plant construction (4%), underground electrical conduit construction (15%), and other works (13%), such as road construction and slope protection. The domestic revenue share is 96%, while international revenue accounts for 4%.