Siamraj upbeat about profit

MAI-listed Siamraj Plc (SR), an engineering and gas pipeline firm, expects greater net profit this year after cutting costs and through mergers and acquisitions (M&A).

Chief executive Kiat Vimolchalao said he expects total revenue this year of 1.38 billion baht, on par with last year’s, but net profit is projected to surpass last year’s 102 million baht.

The company set aside capital expenditure of 600 million baht for 2017-18, excluding M&A. Most of the capex is for investment in developing new solar farms and expand the number of compressed natural gas (CNG) stations to add profit.

The company aims to build two new CNG stations in Chai Nat and Ayutthaya provinces, with construction scheduled to start in the second and third quarter this year, respectively.

Siamraj was established in 1984 to provide engineered pumps and systems for industrial factories. The company diversified into pipeline transmission and the natural gas for vehicle business in 2004 to capitalise on rising demand.

Mr Kiat said the company has a backlog in the gas pipeline business worth 566 million baht due to be booked as revenue this year. Siamraj plans to bid for new projects worth a total of 1 billion baht this year.

He said the company is also mulling a plan to merge with a natural gas business, expecting a final decision by the second half this year.

It also plans to buy stakes in two solar farm development companies with a combined power-generating capacity of 11 megawatts. The plan is expected to be finalised by the second half this year.

Siamraj has a target to build its own greenfield renewable projects as it plans to bid for a licence to develop solar farms under the rights offered to agricultural cooperatives, with capacity of 5MW. The bid is due to open in April, with a licence granted in the second half.

SR shares closed yesterday on the MAI at 3.36 baht, up 24 satang, in trade worth 67.7 million baht.