SET-listed digital solutions provider Turnkey Communication Services (TKC) is targeting 20% growth in net profit this year, thanks to overall investment in digital infrastructure by the state and private sector, especially cybersecurity development and smart solutions.
There is also increasing demand for green energy, unmanned vehicles and solar cells.
The company operates a wide range of ICT ventures through its six core businesses comprising telecom, data communications, public safety, digital services, edutech and green solutions.
TKC has expanded its core businesses from four to six since 2022 by adding edutech and green solutions to capture opportunities in the smart solutions sector.
According to Sayam Tiewtranon, chief executive and managing director, the growth target for net profit this year is expected to follow the direction of the 241 million baht recorded in 2022, representing a 20% increase over the level posted in 2021.
The company recently reported to the Stock Exchange of Thailand that its total revenue in 2022 hit 2.45 billion baht.
Of total revenue last year, 52% was generated by both state and private projects, 36% by engineering and maintenance tasks, and 21% from sales of products and services.
The company's board of directors resolved to approve a dividend payment for the firm's performance in 2022 at the rate of 0.40 baht per share.
The annual general shareholders' meeting is slated for April 20 for the approval of the payment.
Despite the economic slowdown, Mr Sayam said the overall market outlook after the pandemic looks brighter as indicated by the greater potential for investment in digital infrastructure and digital solutions to create more efficient operations and management in the "new normal" era.
For the telecom sector, the merger deal between True Corporation and Total Access Communications (DTAC) has become clearer and progress has been made which would create potential for solutions and networking vendors to capitalise on the infrastructure adjustment and investment in the near future.
A greater number of state and private organisations have also adopted Internet of Things solutions as well as cloud and artificial intelligence.
In 2023, the combined operations of telecom, data communications, public safety and digital services are expected to generate around 65% of the company's total revenue, while the remaining 35% would be generated by edutech and green solutions.
Amid the sluggish economy, large corporations have continued to invest in digital transformation while medium-sized businesses need to invest in digital as a means of business survival, he said.
Mr Sayam expects to see more investment from the private sector. Investment in infrastructure is still relatively small compared to other countries, especially Singapore.
Currently, state projects contribute 70% of TKC's total revenue, while the rest comes from the private sector.
The company targets equal revenue contribution from state and private projects in the next two years.
For the new two core businesses of edutech and green solutions, Mr Sayam said TKC started providing training in cybersecurity and plans e-sports and coding lessons by its subsidiaries such as Exdream and Eastgate Tech.
The green solution business will also provide services through IBS Corporation, in which TKC holds a 99% share, to provide services in the clean energy and EV businesses.
All these will be new revenue streams that will be gradually recognised this year.
TKC's project backlog stands at a combined 5 billion baht which will be gradually recognised in its financial statement from the first quarter.
Mr Sayam added that the company has partnered with King Mongkut University of Technology Thonburi to develop a prototype unmanned electric bus to pick up tourists in Ayutthaya which is expected to be completed next year.
This project will include the development of electric vehicle charging points.