Ubonwatsadu Co, the operator of construction materials dealer DoHome, plans to invest 12 billion baht to open six new branches in the next few years, eyeing a capital raise via the Stock Exchange of Thailand by 2017.
The company will spend 2 billion baht to set up each new store, including the cost of land plots sized at least 70 rai and construction expenses, said vice-president Nataya Tangmitrphracha.
"The six new branches will bring us nationwide," Mrs Nataya said yesterday. "As the domestic economy this year is gloomy and we just opened two new sites earlier in the year, we will start investment in new branches next year."
The new sites will be on Bang Na-Trat Road and in Chon Buri, Phitsanulok, Surat Thani, Wang Noi in Ayutthaya and Hat Yai in Songkhla.
DoHome, one of the largest and best-established construction materials dealers in the Northeast, has eight branches in Ubon Ratchathani (where it is based), Nakhon Ratchasima, Khon Kaen, Udon Thani, Rangsit Khlong 7 and Rama II.
Earlier this year it opened new branches in Nonthaburi's Bang Bua Thong district and in Chiang Mai, said Mrs Nataya, 63, who started DoHome as a two-shophouse steel dealer 33 years ago.
"During the past three years, sales growth dropped to 17% per year from the usual 20% due to unfavourable economic sentiment," she said.
"As non-salary people like those in the agricultural sector face drought, sales in the first quarter rose only 11-12% from the same period last year, which made us revise down our sales target this year by 10% to 20 billion baht from 22 billion."
Last year the company posted 17.2 billion baht in sales from six branches, up from 15 billion baht in 2014, yet slightly lower than the targeted 17.5 billion.
As it would continue restructuring its accounting system, reducing expenses and planned to sell more imported products which generate higher profit, it is aiming for 18% profit growth this year compared to 11-12% last year.
The new accounting system would also help it prepare to raise funds on the stock exchange with Phatra Securities, Kasikorn Securities and PricewaterhouseCoopers as financial advisers, with the listing scheduled by the end of next year.
Currently, the company has a registered capital of 1 billion baht.
"We have been preparing to raise funds on the stock market for a while but we will wait for the right time to do it as the current economy and stock market is unfavourable," she said.
"Funds raised will be used to expand new branches. Failing this, we will take out bank loans to expand."