Ticon promises rosier 2017
New shareholder infusion adds latitude
SET-listed Ticon Industrial Connection Plc, a developer of ready-made factories and warehouses, is confident of a better financial performance this year after a sharp contraction last year.
Chief executive Virapan Pulges said Ticon would be able to grow again this year, thanks to new major shareholder, Frasers Centrepoint Ltd, which would help enhance the company’s financial flexibility for its future business expansion.
Ticon sold a 40% stake last year to Frasers Property Holdings Thailand Co, a subsidiary of Singaporelisted Frasers Centrepoint Ltd.
Frasers Centrepoint is also a subsidiary of Thai Beverage Group, controlled by tycoon Charoen Sirivadhanabhakdi.
In January this year, the company said it plans to spend over 3 billion baht to build rental factories and warehouses to serve its logistics operations in 2017.
About 90% of the investment budget will be used to develop warehouses under the Ticon and T-Park brands.
The company will focus more on expanding its warehouse business rather than building factories for rent, as the logistics industry has huge potential to grow over the next several years. The lacklustre electronics and auto parts businesses, by contrast, have put a damper on demand for factories.
The development of new warehouses for rent this year will be in locations within two hours drive of Bangkok.
Ticon has over 10 vacant plots in Bangkok and major provinces to develop rental warehouses in the future. Among them are plots in Wang Noi district, Ayutthaya province; Bang Phli district, Samut Prakan; and Laem Chabang district, Chon Buri.
With the new investment this year, the company expects its total warehouse space will increase by 200,000 square metres, up from 2.6 million sq m last year.
Outside of Thailand, Ticon plans to spend 500 million baht this year to build warehouse projects in Kalimantan and Sulawesi, both in Indonesia.
The company expanded its quality rental warehouse and factory business to Indonesia last year by joining hands with Indonesian property developer SSIA and the Japanese firm Mitsui to set up a joint venture called PT SLP Surya Ticon Internusa, with registered capital of US$46.4 million (1.63 billion baht.)
The newly established firm plans to target customers from various industries including automotive, electronics, consumer products and logistics service providers.
Ticon is owned by Rojana Industrial Estate, City Realty and TCC Group, which is controlled by billionaire Charoen Sirivadhanabhakdi.
Ticon posted revenue of 2.48 billion baht in 2016, down by 53.7% from a year before. Its net profit fell by 64.3% to 275 million baht.
Shares of TICON closed unchanged yesterday on the SET at 15.50 baht in trade worth 6.03 million baht.