Halcyon Technology, a Thai manufacturer and distributor of customised cutting tools, is upbeat about its business prospects due to the recovery of the global hard-disk drive (HDD) market.
Pete Rimchala, managing director, said the company, which moved from the Market of Alternative Investment (MAI) to the Stock Exchange of Thailand (SET) yesterday, expects to see revenue growth of more than 10% a year over the next three years.
"We expect total revenue will hit a record high this year, as the global HDD market, especially for hi-end storage HDD boasting up to 10 terabytes in memory, is bouncing back," he said.
Mr Pete said the company had secured more purchase orders from auto-parts companies after it set up a subsidiary to serve customers in the East.
He said one of the company's new metal cutting facilities, currently under construction in Thailand, is scheduled to start commercial operations in the fourth quarter.
This year, the company will spend 370 million baht, 100 million for the new plant, and the rest on machines.
Mr Pete said the company will revise its investment plan after the third quarter when another metal cutting facility in Vietnam, for which the company has invested US$1 million (34 million baht), is completed.
Last year, the company reported total revenue of 826 million baht, an increase of 14.1% from 2015 and a net profit of 142 million, an increase of 75.2%.
Halcyon Technology was founded in 2002 by Thai businessmen who partnered with Singaporean investors to produce cutting tools for electronics and auto parts. The company raised funds and listed on the MAI in 2009.
At that time, cutting tools made from polycrystalline diamond, monocrystal, polycrystalline carbon boron nitrite, carbide cutting tools and high-precision parts were new in Thailand.
After pioneering this sector in Thailand, Halcyon Technology expanded in Asean. Along with plants in Thailand, the Philippines, and a new one on the way in Vietnam, the company has subsidiaries in five countries and distributors across Asia, including Philippines, Singapore, Malaysia, Vietnam, Indonesia.
In 2016, the firm's revenue from abroad reached 312 million baht or 37.7% of the total.
Halcyon Technology has registered capital of 300 million baht -- the minimum required to list on the SET. Mr Pete said moving to the SET will help the firm attract institutional investors, adding that shares on the bourse have higher liquidity.