CTV-Doll optimistic about 2016
MAI-listed Cho Thavee Dollasien Plc (CTV-Doll), a bus and truck assembler, is upbeat about revenue prospects this year despite the country's gloomy economic prospects.
According to president and chief executive Suradech Taweesaengsakulthai, the company expects revenue to rise by 5-10% this year to 1.22-1.28 billion baht.
"We will try our best to realise an existing backlog worth 459 million baht in 2016, with the rest contributed by bids to procure vehicle assembly and service solutions for government units such as the Defence Ministry," he said.
Mr Suradech said the company would focus largely on three business units: standard assembly, special design assembly, and project management and service.
CTV-Doll is setting aside 200 million baht for investment this year, mainly in the seventh and eighth service centres in Chon Buri and northern Bangkok.
The company spent 10 million baht to buy a cloud-based system to be introduced at service centres during 2016-18.
Once the new service centres and cloud-based system are complete, profit margin for project management and service is seen rising to 4% in 2018 from 3% last year.
CTV-Doll said revenue fell by 24% last year to 1.16 billion baht, with net profit down 63% at 35.74 million baht.
Last year's falling revenue was mainly due to the cancellation of 489 NGV-fuelled buses by the Bangkok Mass Transit Authority, despite the firm having won the bid.
The BMTA scrapped the auction when it found that the agency's terms of reference contradicted Thai law.
CTV-Doll owns the proposal for the NGV buses submitted by JVCC Co, a joint venture between Khon Kaen Cho Thavee (1993) and Germany's Doll Fahrzeugbau AG.
That contract was worth 1.74 billion baht for NGV buses and 2.29 billion for 10-year maintenance costs.
JVCC filed a lawsuit for damages of 1.5 billion baht. The Administrative Court accepted the case last week.
CTV-Doll is still interested in joining coming bids for NGV and electric buses, Mr Suradech said.
CHO shares closed Tuesday on the MAI at 2.30 baht, unchanged, in trade worth 14.6 million baht.