Ticon Industrial Connection Plc, a SET-listed developer of ready-made factories and warehouses, expects its 2016 revenue to grow 5% from 4.8 billion baht last year due to rising demand for warehouses.
The government's policy to promote the Eastern Economic Corridor as well as several roadshows in the first half of this year should help increase investment in Thailand and boost demand for warehouse leasing and land sales, managing director Virapan Pulges said.
"We are confident that revenue is growing this year because increasing demand for warehouses and factories in Asean should boost the company's revenue," he said.
He said an expansion plan in Indonesia to build 111,635 square metres of factory space should also increase revenue.
Ticon is also in talks with two Vietnamese investors to expand its warehouse and factory business in the north and south of Vietnam.
"We and our Japanese partner have been negotiating with the Vietnamese partners but we do not know exactly when the deal will be sealed," Mr Virapan said.
Ticon has total warehouse space of 2.3 million sq m. It has set aside an investment budget of 4 billion baht this year, earmarking 3.5 billion for domestic expansion and the rest for expansion in Indonesia.
Mr Virapan said the company expected investment expansion of Chinese clients in Thailand to grow substantially this year, especially in the electronics, solar panel and auto parts sectors.
"In the first half, the number of Chinese investors increased 30-40%," he said.
In contrast, the number of Japanese investors started to drop, he added.
About 45% of Ticon's customers are Japanese, 26% from Europe, 13% from North America, 7% from Singapore and 5% Thai investors.
The company last year signed a memorandum of understanding with Yokohama Industrial Development Corporation to build a factory zone to accommodate Japanese small and medium-sized enterprises that want to expand in Thailand.
Construction of the first phase on seven rai to accommodate 10 factories has been completed, while construction of the second phase should start this quarter for another 10 factories.
TICON shares closed on the Stock Exchange of Thailand yesterday at 15.50 baht, unchanged, in trade worth 17.5 million baht.