Yong Concrete, an MAI-listed manufacturer of concrete products, plans to shift its focus from the slow residential market to the industrial sector, which could cause growth to fall below the company's original target.
Chief executive Sunpetch Slisatakorn said foreign investment in the industrial sector through the Board of Investment (BoI), particularly in the Eastern Economic Corridor (EEC) area, surged in the first half of 2024.
"Driven by the US-China trade war, the industrial sector should continue to flourish over the next few years, becoming a new economic engine to support the tourism and export sectors," he said.
According to the BoI, the number of overseas projects approved in the target areas of the EEC in the first half soared by 91% to 455 projects with an investment value of 195 billion baht, up from 238 projects worth 190 billion year-on-year.
Rayong attracted the most investment, recorded at 101 billion baht from 161 projects, followed by Chon Buri with 82.4 billion from 260 projects and Chachoengsao with 11.1 billion from 34 projects.
"Our two new plants in Rayong can support construction sites within a 150-kilometre radius, covering Chon Buri, Chachoengsao, and even Trat and Chanthaburi, where property development is taking place," said Mr Sunpetch.
The first plant produces ready-mix concrete and is located on a six-rai plot in the Nong Bua sub-district of Ban Khai district, opposite a WHA industrial estate, where investors from overseas plan to open at least five new large factories.
Production is scheduled to commence later this year, with revenue recognition starting from 2025, which would create a new revenue stream, Mr Sunpetch said.
The other plant produces precast concrete and is situated on a 76-rai plot in Map Kha sub-district of Nikhom Pattana district.
The project will be divided into four phases, and it is expected that the company will realise revenue from the first phase in the second half of 2025.
In this year's first half, Yong reported revenue of 532 million baht and a net profit of 44 million baht, representing decreases of 0.68% and 21.6% year-on-year, respectively.
The largest customer segment was contractors and others, accounting for 49%, followed by residential developers (36%), foreign investors in the industrial and residential sectors (8%), and government sectors (7%).
Due largely to a sharp contraction of 28% in value and 35% in unit numbers in the residential sector during the first six months, the company expects revenue growth of 10% by the end of 2024, falling short of its original target of 15%.
