Ticon rakes in revenue from rising rentals

SET-listed Ticon Industrial Connection Plc, a developer of ready-made factories and warehouses, posted total revenue of 1.87 billion baht and a net profit of 278 million in 2016.

Chief executive Virapan Pulges said the majority of revenue — 1.17 billion baht — came from rentals and related services. Revenue from management fees totalled 201 million baht, while gains on sales of investment units in associates came to 104 million.

As a result, he said the company’s board of directors and management team are revving up plans to be a leading developer of integrated industrial properties in Thailand and Asean.

He said 2016 was a record year for Ticon group, with factory and warehouse space for lease increasing by 321,888 square meters — 107,390 sq m for factories and 214,498 sq m for warehouses.

“The results for 2016 showed continued, steady growth as targeted thanks to the domestic market, which remained very active, with rising demand for factory and warehouse space for lease, especially in the second half of 2016. This reflects a positive trend being driven by the national public investment policy and significant growth of development initiatives run by foreign investors, whose projects have been approved by the Board of Investment,” he said.

With the growing economies in other Asean member countries, Mr Virapan said warehouse expansion in Indonesia has also risen as planned.

The capital increase by Frasers Centrepoint Limited last year was seen as a positive factor enhancing Ticon’s financial flexibility for its business expansion. The company was further buoyed by a clearcut plan for further growth and a large customer base, with high future demand for warehouses in Thailand and abroad.

These factors should enable Ticon to enhance its competitiveness.

Ticon has initiated the process of selling 735 million shares to Frasers Property Holdings Thailand Co, a subsidiary of Singapore-listed Frasers Centrepoint Ltd, which is also a subsidiary of Thai Beverage Group, controlled by tycoon Charoen Sirivadhanabhakdi.

TICON shares closed yesterday on the Stock Exchange of Thailand at 15.40 baht, down 30 satang, in trade worth 5.65 million baht.