SET-listed Chonburi Concrete Product Plc (CCP) is in talks with Japanese and Chinese investors to set up a joint venture to produce value-added concrete products, a trend indicating foreigners' increased interest in using Thailand as a hub for the upcoming Asean Economic Community.
A deal is expected to be reached in the third quarter of this year, said managing director Artit Teeparkornsukkasem.
Some foreign investors believe Thailand will be the centre of the Asean regional integration set to start in 2016, he said.
"Potential partners believe our company has the potential to serve growing demand for building materials," said Mr Artit.
The company aims for its revenue to surge by 15-20% this year to 3 billion baht, with the majority from precast concrete products.
In 2012, CCP's revenue reached 2.61 billion baht, up 15% from the previous year. It delivered a whopping 510% rise in net profit to 215.42 million baht from 35.29 million in 2011.
Its gross margin this year is estimated at 16.2%, up from 13.7% last year, said Mr Artit.
He is confident the company will win a bid to supply building materials for the construction of the Purple Line mass transit this year, as it has experience in supplying building materials for the Blue Line.
CCP has a backlog worth around 2 billion baht, half of which is in the public sector with the rest in the private sector, and the company expects to realise income from the backlog in one and a half years, he said.
CCP shares closed yesterday on the SET at 9.55 baht, unchanged, in trade worth 179.05 million baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter