Tirathai Plc (TRT), Thailand's top electrical power transformer manufacturer, is targeting a 150% increase in annual revenue to 5 billion baht by 2017.
The company achieved revenue of 1.96 billion baht last year, up from 1.88 billion in 2011, for a net profit of 29.6 million, down from 199 million.
Managing director Sumpan Vongphan said revenue this year is expected to increase by 40%, driven by growth in Thailand's energy sector and some projects to be realised this year.
TRT usually enjoys annual revenue growth of 20%, but last year there was a slowdown due to fierce competition.
"This year we're aiming at 40% growth due to last year's weak earnings," Mr Sumpan said.
The company projects growth of 20% annually starting from next year for the long term.
Mr Sumpan said the Asean Economic Community presents opportunities for growth of the power transformer industry, in which Thailand is stronger than neighbouring countries.
TRT issued a 600-million-baht debenture last June to raise funds for diversification and working capital.
About 280 million baht will be spent on a fabricated steel plant and 220 million on a new power transformer plant, while the rest will be kept as reserves.
The investment will increase annual steel production capacity to 10,000 tonnes from 2,500 and power transformer capacity to 7,500 megavolt-amperes from 5,000.
Commercial production from the capacity expansion for the two plants is expected to start by the end of next year.
Listed on the Market for Alternative Investment (MAI), TRT's customers are evenly distributed between government projects, private projects and export sales to other Asean countries.
But the ratio of exports may fall this year due to an expansion of domestic projects driven by growth in the country's energy sector, said Mr Sumpan.
For this year's first quarter, TRT posted revenue of 477 million baht for a net profit of 36.2 million.
Shares of TRT closed yesterday on the MAI at 5.55 baht, up 10 satang, in trade worth 5.19 million baht.
