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Published on July 13, 2007

Chairman Assavin Chingumtornvong yesterday said if the company achieved its new target, then that would represent growth of 42.86 per cent from last year's Bt1.19 billion.

The revised target is based on the company's first-quarter backlog of Bt1.5 billion and an assumption that the company will receive an additional backlog from auctions, he said.

Assavin said he believed his company would succeed in winning more construction projects as the country's economy improves in anticipation of a clearer political situation.

"We now have a Bt1.5-billion backlog, of which Bt1.4 billion will be recognised as revenues this year. Sales revenues amounted to Bt345 million in the first three months of the year. The company has been receiving building work continuously, because our existing clients have expanded their business and gave us work," he said.

The company's profit margin this year will be quite close to last year's 4.23 per cent, although the profit margin in this year's first quarter fell slightly, due to tougher competition, he said.

TIES posted a first-quarter net profit of Bt13.67 million, down significantly from Bt50.35 million in the same period last year.

Meanwhile, Assavin admitted the company had a low stock-trading liquidity problem.

"Checking the name list of shareholders, we found there were no transactions involving the 2 million initial public offering shares sold earlier to our staff, while there were one or two retail investors who owned more than 1 million shares, and this caused low trading liquidity," he said.

To solve this problem, Assavin, who holds 37.78 per cent of shares, and Sompol Temsuk, who holds 36.3 per cent, will sell a combined 10 per cent, to raise company liquidity.

The company's shareholders are considering whether to sell the shares through a big lot or regular trading.

The company might also choose to increase capital to improve stock-trading liquidity. However, he said the effect on earnings per share would be a concern for this option.