SET-listed Samart Corporation is aggressively riding emerging green energy and waste disposal trends.
President Watchai Vilailuck outlines Samart Corporation’s business plans yesterday. SRISAMORN POOSUPANUSORN
The move is aimed at more than tripling its consolidated annual revenue to 100 billion baht by 2020.
The solid-phase diversification is also aimed at reducing its dependence on what it calls the politically sensitive and rapid technological changes in the telecommunications industry, president Watchai Vilailuck said yesterday.
The communications equipment maker has also set aside an ambitious investment plan of 100 billion baht to build a possible 2,000 megawatts of capacity for a coal-fired power plant in Cambodia if it can reach a deal with a prospective partner.
“The partnership would be in the form of a takeover or joint venture,” Mr Watchai said.
“If the coal-fired power plant can take off, we expect to realise 30-40 billion baht in revenue from the plant each year.”
Samart plans to issue debentures worth 5 billion baht and increase capital this year in order to fund its plans to construct three waste disposal factories upcountry.
Mr Watchai said Samart, through Samart U-Trans Co, was gearing up for aggressive investment in utilities, transport and energy businesses to create new sources of sustainable revenue in the coming years.
Energy businesses cover alternative and conventional energy such as coal-fired power and fuel-power plants as well as waste energy.
“We're outlining new business models and strategies that would benefit our bottom line and diversify into the clean-technology revolution that is creating a new economy based on renewable energy sources,” Mr Watchai said.
“Samart is bracing itself for what could be a critical turning point for us. We're laying the foundations for a new wave of growth based on clean technologies for a green-energy economy.”
He said the company was taking the next step in developing an environmentally sustainable business strategy.
“Our consolidated annual revenue is projected to top 100 billion baht by 2020, with half coming from new businesses,” Mr Watchai said.
He said Samart projected revenue growth of 30% to 30 billion baht this year, with the bottom line expected to grow even stronger over a year earlier with a profit margin of 12%.
Samart Telcoms Plc, the group’s information and communications technology subsidiary, expects revenue of 10 billion baht this year.
It expects to win at least five state bids for projects in the first half of 2015.
Handset distributor Samart I-Mobile Plc expects to realise revenue of 13 billion baht, helped by an expected 30% increase in handset sales to 5.5 million devices this year and burgeoning mobile applications.
I-Sport, the sports app arm of Samart I-Mobile, plans to list on the Market for Alternative Investment this year, Mr Watchai said.
He said up to 6 billion baht in revenue would come from the group’s new utilities and transport businesses this year.
Another 1 billion baht is expected to come from call centre services.
SAMART shares closed yesterday on the SET at 42 baht, unchanged, in trade worth 134 million baht.