Message from Chairman and CEO

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Mrs.Kanoktip  Chanpalangsri
Chairman of Executive Board

Mr.Pathompol  Saosap
Chief Executive Officer and President

The operating performance of Thai Polycons Public Company Limited in 2021 showed some losses although its business operation has been carefully performed in line with the business strategy and risk management due to economic circumstances and serious shrinkage of the construction industry. Though the economic situation has been improving for a short period in the third quarter, the new pandemic wave of Omicron hammered the construction industry to be worse than expected and planned to cope with it by the Company on the beginning of the previous year. The operating performance of the construction industry has shrunk in terms of sales and profitability. The declining sales derived from 2 main factors: delivery inconsistent with the construction schedule resulted by the pandemic control measures in construction sites; and shortage of labor, which were the external factors, while the internal factor was that some new projects in 2021 (win bid) were awarded during the end of the previous year, so few revenues could be recognized.

In respect with profitability, the Company has been directly affected by competition that has been hiking persistently from the shrinking investment of the private sector since 2019 due to the COVID-19 pandemic until the private sector lost confidence in making investment in many construction projects. Therefore, most new construction projects in 2021 were initiated by the government sector, excluding the mega infrastructure projects. The bids were proposed under low prices, or some projects were awarded under some loss. These were the main reasons that the Company’s profit margin has gradually declined since 2019. However, the electricity distribution business of the Company could earn the good operating results although the profit margin decreased slightly from problems of fuel price and new power plants in 3 southern border provinces where the sales of electricity have not yet run fully.

In 2022, the Company intends to turn its operating performance to earn some profit, especially the construction business which holds the backlog order amounting to Baht 3,892 million, and waits for the contract signing for certain infrastructure construction projects. These could make the profit margin of the Company in the construction business look better. It is expected that the profit margin of the power plant business would be improving from lower fuel cost from the lumber yard business operated by the Company’s trading business. It is estimated that the sales sum of all businesses would grow up for not less than 10%.

In 2022, the Company intends to turn its operating performance to earn some profit, especially the construction business which holds the backlog order amounting to Baht 3,892 million, and waits for the contract signing for certain infrastructure construction projects. These could make the profit margin of the Company in the construction business look better. It is expected that the profit margin of the power plant business would be improving from lower fuel cost from the lumber yard business operated by the Company’s trading business. It is estimated that the sales sum of all businesses would grow up for not less than 10%.