INDUSTRY

TMC Industrial, a manufacturer of hydraulic and mechanical presses, plans to form a joint venture and sales unit in Myanmar this year to take advantage of the country's rapidly growing economy.

The MAI-listed firm also hopes to increase exports of mobile cranes, presses and die-casting equipment across the region with the impending launch of the Asean Economic Community in 2016.

"We have sales units for all the countries in the AEC except Myanmar and Brunei," said chief executive Surachet Kamolmongkolsuk. "Now it's Myanmar's time, and the growth potential for the country is very strong."

TMC generates 9% of its revenues from export sales but expects this to increase in the future with the region's economic growth and demand for construction equipment.

Mr Surachet said demand for mobile cranes last year exceeded expectations with the increase in investment by the private sector. The government's wildly successful first-time car buyer scheme, which helped to push auto production to a record 2 million units, also helped to raise demand for hydraulic and die-casting machinery.

TMC posted a net profit of 109 million baht on revenue of 724 million for the first nine months of 2012. Full-year profit for 2011 was 32.4 million baht on revenue of 669 million.

Most of the company's revenue comes from sales of hydraulic machinery and presses. Mr Surachet said crane sales and exports will soon match sales revenue from hydraulic machinery and presses.

He said the company expects to maintain gross profit margins of 30% and net profit margins of 15% this year, with a target of 30% revenue growth.

The company increased paid-up capital by 90 million baht in an initial public offering last October, with an IPO price of 3.12 baht per share.

TMC shares closed unchanged on Friday on the MAI at 7.55 baht in trade worth 4.96 million.