SET-listed Tirathai Plc (TRT), a transformer manufacturer, expects to miss its 2017 revenue target of 3 billion baht, citing the persistent economic slowdown.
Chief executive Sumpan Vongphan said full-year revenue will reach an estimated 2.6 billion baht, up 15% year-on-year.
Of the total revenue, domestic sales generated around 70% of revenue, with the rest from exports.
Previously, the company expected revenue next year to grow beyond 3 billion baht, a growth of approximately 20%.
Tirathai expects several transformer jobs and services to be available for bids next year, worth up to 8.6 billion baht. Of the total, 4.3 billion baht is expected to be from the state power utility, 1.03 billion baht from the private sector, 870 million baht from the export market and around 2.3 billion baht from transformer services, he said.
In total, the company expects 20-25% of total bids next year to be awarded to the company.
Mr Sumpan said Tirathai has a backlog of transformer and services jobs worth 2.22 billion baht. Of the total, jobs worth around 829 million baht will be completed and delivered by the fourth quarter of this year, around one billion baht will be completed by next year and around 386 million baht will be completed by 2018.
He said the estimate for jobs next year excludes a 10-billion baht contract for the Electricity Generating Authority of Thailand (Egat), which is part of the Egat project to develop high voltage transmission lines nationwide, an investment of over 300 billion baht to be developed from next year to 2020. Tirathai is one of the companies qualified to join the bidding.
Mr Sumpan said other potential transformer and steel fabrication jobs over the next two years will come from privately-invested renewable power plants.
He said transformer jobs and services in Asean are rising in potential because countries are experience rapid economic growth, bringing about strong growth in power and power transformer services.
In light of these expected changes, Tirathai estimates revenue over the next two years will rise to above 5 billion baht despite missing its revenue target of 3 billion baht next year.
To achieve this, Tirathai plans to invest 400 million baht towards improving production facilities of new transformers in its existing factories in Bang Pu Industrial Estate.
The new facilities are expected to start operating by the end of this year and will contribute to expand the company's capability to produce 500-kilovolt transformers that match new jobs it will be awarded over the next few years, he said.
Its new factory will have the ability to build transformers of up to 9,000 megavolt amperes, up from the current 5,000 MVA amperes.
Tirathai expects its balance sheet this year will move into the black after its loss of 58.3 million baht in 2015 due to the cost overrun from its main project.
TRT shares closed yesterday on the Stock Exchange of Thailand at 3.90 baht, down 14 satang, in trade worth 7.86 million baht.