Italthai likes chances as economy revs

Italthai Group, one of Thailand’s oldest construction and hospitality companies, is confident of achieving revenue of 30 billion baht by 2021 amid favourable Thai economic sentiment.

The group expects revenue of 13.44 billion baht, up 17%, in 2018 and aims for 15.03 billion baht, up 12%, next year.

Italthai runs four core business units: engineering services and construction contractor, construction equipment, hospitality and lifestyle/other.

Chief executive Yuthachai Charanachitta said the group’s revenue from the construction sector in 2019 will represent roughly 63% (9.4 billion baht) of the total, while the hospitality and lifestyle units will account for 37% (5.63 billion baht).

He said construction is driven by state megaprojects such as repair and maintenance of roads and five infrastructure projects in the flagship Eastern Economic Corridor.

“Moreover, Thailand’s 20-year national strategy will stimulate and drive the economy and investment,” Mr Yuthachai said. “The country’s overall industrial construction will grow 7-9%, while the tourism sector will grow 9.6% a year during 2018-20, and both sectors are major contributors to the Thai economy.”

The group plans to expand its business across Asia-Pacific, following the five-year strategy for 2017-21. Mr Yuthachai declined to provide precise details of the group’s investment budget.

Sakol Laosuwan, chief executive of subsidiary Italthai Engineering (ITE), said the unit is eyeing large-scale projects such as high-speed railways; renewable energy; mechanical, electrical and plumbing (MEP) systems for highrise buildings; and petrochemical infrastructure construction.

“ITE expects 2019 revenue to rise by 5.1% to 6.1 billion baht from 5.8 billion baht in 2018, which itself was up sharply by 45%,” Mr Sakol said. “ITE has 45 domestic projects in development worth about 11 billion baht.”

He said ITE will focus on the targeted industries and expand its presence in Laos, Myanmar and Cambodia.

The group also owns Onyx Hospitality and plans to increase its network of hotels and serviced apartments domestically and overseas.

In 2019, Onyx will launch projects as part of a bid to have 99 hotels by 2024, up from 50 in eight countries now.