Listed technology companies are upbeat about growth opportunities this year despite the subdued economy, thanks to ongoing digital transformation in the public and private sectors.
"Businesses are continuing their digital transformation and investing in generative artificial intelligence [AI] technology," said Chaiyuth Chunnahacha, chief executive of G-Able, a tech enabler and digital solution provider.
The company aims to be a long-time partner to help organisations become AI-ready, he said.
G-Able focuses on offering business applications for enterprise resource planning, customer relationship management and human capital management. The company expects double-digit sales growth for all three segments this year, said Mr Chaiyuth.
It is in negotiations to be the sole distributor and local implementer of one large human capital management solution that has 65 million users, he said.
This year the company will focus on growing via an inorganic basis through mergers and acquisitions, using its cash of 600 million baht, said Mr Chaiyuth.
Raveeratana Satchavarodom, chief finance and strategy officer at G-Able, cited Gartner Inc research that predicted Thailand's IT spending will have a compound annual growth rate (CAGR) from 2021 to 2027 of 10.2%, valued at 473 billion baht this year.
IT service has a CAGR of 13.5%, worth 202 billion baht in 2027, while data centres have a projected CAGR of 12% and a value of 41 billion baht. The enterprise software CAGR is expected to be 17% for a value of 157 billion baht.
Ms Raveeratana said the banking, telecom, education and healthcare sectors have continued to invest in technology.
G-Able aims for income growth of 5-15% in 2024 and a new high, she said.
The gross profit margin target is 20-22%, similar to the previous year, while the recurring income target is greater than 50%. The backlog income target is 4.5-5.5 billion baht, according to the company.
The group posted income from sales and services of 5.33 billion baht in 2023, up 13% from the previous year.
Pochara Arayakarnkul, chief executive of the digital transformation consultancy Bluebik Group, said although the slowing economy will affect investment in the private sector in 2024, demand for digital transformation in the business sector is growing.
Bluebik adjusted its business plan to suit stricter expenditure from clients, aiming to meet its growth targets by promoting synergy among its subsidiaries to gain economies of scale, he said.
The company will continue on the mergers and acquisitions path, keen on markets with high potential such as Malaysia, the Philippines and Vietnam, said Mr Pochara.
Bluebik is confident of 50% growth in operating performance this year. Last year net profit tallied 303 million baht, up 132% year-on-year, on revenue of 1.3 billion, a gain of 133%.
Sayam Tiewtranon, chief executive of digital solutions provider Turnkey Communication Services, said the company is upbeat this year, targeting annual revenue growth of at least 10% from its eight main business groups.
He said despite the economic slowdown, the IT market looks better than the past few years as the business sector continues to invest in digital infrastructure and adopt digital solutions.
