Pylon Plc, a foundation construction specialist, is aiming for record-high revenue of one billion baht this year from aggressive expansion of its civil works business, especially for government infrastructure megaprojects.
Bordin Sangarayakul, a senior executive vice-president, said the MAI-listed company would bid for 600 million baht worth of new contracts excluding construction related to new mass-transit routes.
Pylon has an order backlog totalling 900 million baht, of which up to 80% will be realised as revenue this year.
“Launches of electric train projects will give a big boost to the overall construction industry, as these are of huge value and will result in several new contracts,” said Mr Bordin.
The government has already named companies for work on the Blue Line, and contracts are pending. Bidding for the Red Line and the Green Line extension of the BTS SkyTrain will be called this year.
“We are in the process of submitting bidding proposals. We’re keen on tendering for all the projects,” Mr Bordin said.
Solid demand also exists for water-related civil works programmes, with the Bangkok Metropolitan Administration and the Royal Irrigation Department being Pylon’s major clients in this area.
“We’re expanding our civil works business this year because these projects are normally bigger than foundation construction. In the next three to five years, civil works will contribute more to Pylon’s revenue than will foundation contracts,” said Mr Bordin.
He said that with the political situation easing and the economy improving, the company has gained more work since last year’s third quarter, which gave a significant boost to its fourth-quarter revenue.
Meanwhile, concern over investment uncertainty in Rayong’s Map Ta Phut area has eased, with new projects being considered.
The contractor is currently working on an expansion of the Star Petroleum refinery in Map Ta Phut along with a new plant for Samsung Electronics in the Wellgrow industrial estate in Chachoengsao, said Mr Bordin.
He said these and others would enable Pylon to beat its 2010 revenue target of 600 million baht.
Pylon reported a 596.42% jump in net profit to 4.28 million baht in the third quarter of last year.
But for the first nine months of 2010, Pylon achieved revenue of 402 million baht, down 23.4% year-on-year, and net profit of 7.8 million, down by 76%.
“This year, we expect revenue growth of 50-60% from 2010 and a higher net profit,” said Mr Bordin.
He also called on the government to consider measures to strengthen the country’s competitiveness and attract new foreign investment.
“Thailand’s corporate income tax is higher than in countries like Singapore and Malaysia, while wages, except for skilled workers, are no longer competitive with those in neighbouring countries,” he said.