Mr. Thongchai PairrungsriChief Executive Officer
Dear All Shareholders,
In 2017, the Company fully engaged in the foundation construction (bored pile and barrette pile construction) business in response to increased business opportunities resulting from investments in basic transportation and infrastructure projects such as double-track railways, various lines of mass transit transportation, Bang Pa In-Nakhon Ratchasima motorway, Bang Yai-Kanchanaburi motorway and etc. With experience in machinery management and competitive advantage, the companyachievedexcellent customer response successfully generated almost 340.0 million baht in revenue from the aforementioned business with a strong inclination for growth. At the same time, the rental and machinery dealer businesses were well directed with satisfactory growth rates. Furthermore, expenses were effectively managed to bring the Company’s returns back into the positive direction. Although net profit remains somewhat low, the aforementioned is still a good sign that the Company is on the right track in dispersing business risks with decreased over-dependency on revenue generated from any single business. Meanwhile, as for cooperating with the provincial administration of Trang (Trang Provincial Administrative Organization), concession was granted for the management of a Na Kluea Port. The cooperation covers importation of machinery to provide port services where revenue from machinery services is split with Chu Kai Public Company Limited and Trang Provincial Administrative Organization at the ratio of 80:20. In this aspect, the Company would like to expand into the logistics business but still cannot achieve that goal because of lack of clarity from the Trang Provincial Administrative Organization in the port administration. As a result, only machinery services are provided at the port, and, in that regard, the volume of goods passing through the port is still rather low.
In 2018, the Company is focused on increasing investment in the foundation construction (bored pile and barrette pile construction) business in order to increase opportunities for accepting jobs in many transportation and basic infrastructure projects, especially the various lines of mass transit transportation projects.
As for the rental business, the Company is delaying investment and is focusing on effectively managing currently available machinery consistently in line with increased profitability such as by selling off unprofitable machinery. Meanwhile, for the machinery dealer business, cooperation will be increased with XCMG to lay out strategy for pushing large lots of sales to contractors involved in government public utility construction projects such as by increasing the availability of various types of construction machinery in addition to truck cranes and drilling rigs in order to allow XCMG products into the market and gain greater reliability. In addition, the Company retains its strict policy of effectively managing its cost and expenses. Thus, the Company is confident that these strategies and business structure will bring the Company’s performance to succeed in achieving stability and sustainability growth.