The SET-listed Sriracha Construction is confident of net profit growing by 30-35% annually in the next five years.
Sriracha, Thailand's leading structural steel engineering firm, reported 2012 revenue and net profit of 2.15 billion and 1.02 billion baht, on par with the previous year's levels.
Gross profit was 1.45 billion baht, representing a margin of 67%, and net profit margin was 48%, translating to earnings per share of 3.86 baht.
Director Chatmongkol Khemapirat said the high margins will be maintained because the company can handle entire construction projects by itself without the need for outsourcing.
The company will pay a dividend of 1.50 baht based on 2012 operations for a total payment of 760.58 million baht.
Mr Chatmongkol said Sriracha has a backlog of 2.4 billion baht, mostly to be realised this year. The company also plans to bid for seven oil and gas projects, of which five are overseas and two are in Thailand, worth 17 billion baht all told.
Three projects out of the seven will be finalised this year.
The company will invest 200 million baht in its new factory to expand capacity, using leftover funds raised from the stock market last year.
"Sriracha has a relatively low debt-to-equity ratio and strong cash flow," said Mr Chartmonkol. "Our reason for listing on the exchange was to increase creditability, as our company is working overseas."
He said most clients are foreign private companies in the oil and gas business, as Sriracha specialises in oil and gas mechanical construction.
Deputy managing director Gridsada Potisomporn said the results of first-quarter operations this year will mirror last year's showing, largely because of ongoing construction scheduled to finish in the second quarter.
Shares of SRICHA closed yesterday on the Stock Exchange of Thailand at 54.25 baht, down 50 satang, in trade worth 137.5 million baht.