Tirathai Plc (TRT), a MAI-listed electricity transformer producer and maintenance service provider, expects 25-30% growth in total revenue with the continuing development of power facilities at home and abroad.
Managing director Sampan Vongphan said 68% of revenue will come from sales of transformers, its core product.
Tirathai's net profit in 2016 was 61.2 million baht, against a net loss of 58 million in 2015.
"Our turnaround to profitability can be attributed to the expansion of new renewable power plants last year. Transformer sales mainly rely on manufacturing and electricity demand," he said.
The company targets a 25% rise in revenue this year from 2.57 billion in 2016.
'We are aiming for revenue to reach 4.3 billion baht in 2019 as a result of our aggressive expansion to emerging markets," said Mr Sampan. Last year the company generated 479 million baht in revenue from export markets, a figure it aims to increase to 600 million this year.
"Since we are being more aggressive with export sales, export revenue should grow more than 10% each year from now on," he said.
The company and its subsidiaries have combined projects under development worth nearly 2.2 billion baht, 1.4 billion of which are set to be completed and delivered to clients this year. The rest will be ready between 2018-19.
Since last year, the company has joined auctions for transformer purchasing orders worth 13.8 billion baht. It expects to win 25% of that total.
Tirathai's non-transformer products include structural and construction steel, as well as maintenance services.
Mr Sampan said demand for transformer products is rising healthily, thanks to the massive capital expenditure by the Electricity Generating Authority of Thailand, whose expansion and new power plant projects for 2016-20 will require 10 billion baht in transformers.
"Apart from state utilities, private power producers have been developing many renewable plants in recent years and the future remains bright. Also, the growing manufacturing sector will require its own power-generating units, providing us with a good source of income both now and in the future," he said.
Over the past two years, Tirathai has upgraded its product quality and efficiency in engineering, procurement and construction (EPC) services as well as boosted its steel fabrication products and services with the aim of meeting international standards, which is crucial for expanding abroad.
"We hope our revenue from EPC and steel fabrication this year will jump to over 500 million baht from only 61 million last year as a result of our huge upgrade in steel fabrication and EPC services," said Mr Sampan.
TRT shares closed yesterday on the MAI at 4.16 baht, up eight satang, in trade worth 5.41 million baht.
