SET-listed building materials retailer Siam Global House Plc (Global) expects 2018 revenue growth of 13%, driven by an expansion of new branches and a business revamp.
Apisit: Double-digit revenue increases
According to chairman Apisit Rujikeatkamjorn, Global estimates 2017 revenue at 21.4 billion baht, up 10% from the year before.
"We are confident of the growth pace for two straight years," Mr Apisit said.
He said Global budgeted 2 billion baht for 2018 to open eight new branches nationwide. Each store costs roughly 250 million baht for land development and construction.
Apart from its investment budget, Global has set aside working capital of 200 million baht per branch.
The business revamp is expected to reach full fruition in 2018, with improvements to human resources, marketing and logistics.
"The company installed automation and robot systems at its depot last year in order to improve the logistics system and have leaner operating costs," Mr Apisit said. "We have maintained the number of employees, relocating their jobs to other fields before installing the new automation to replace human workers in some difficult work areas."
He said Global will install solar rooftops at each branch, expecting to generate power for itself without a licence for selling surplus power back to the state's utility agency.
Moreover, Mr Apisit forecasts the country's building materials market to contract by 7% in 2018, following last year's 8% drop.
"People's purchasing power in upcountry provinces remains very bearish because some farm products' prices have yet to increase, such as rubber and palm oil," he said.
Mr Apisit said new residential projects in metropolitan areas are becoming an oversupply situation. Although many research houses have forecast Thai GDP to grow by 4% in 2018, the growth is driven by tourism and exports, not local consumption.
For Global's foreign business, the first outlets in Cambodia's Phnom Penh are scheduled to open in the second quarter.
Global has a subsidiary firm, Global House Cambodia, to run the business there. Global holds a 45% stake and a local partner the rest.
"We have set a long-term outlook to expand to five more branches in Cambodia," Mr Apisit said.
Global also has a presence in Myanmar and Laos, with five stores in each.
GLOBAL closed yesterday on the Stock Exchange of Thailand at 18.40 baht, down 20 satang, in trade worth 112.6 million baht.