SCG predicting 1-2% revenue growth
Company to rely on property renovation
SCG Cement-Building Materials expects revenue in 2020 to grow slightly at 1-2%, in line with the country’s construction and property sectors.
It aims to amp up revenue from property renovation rather than relying on new real estate.
“SCG will focus on all property types, including residences and offices, and adopt digital technologies to support SCG’s services,” said president Nithi Patarachoke.
He said SCG is confident the renovated projects will bring many opportunities to the construction market.
“SCG Cement-Building Materials is changing its business model, focusing on innovative and digital technologies that should support SCG’s performance in the long run,” said Mr Nithi.
SCG Cement-Building Materials recorded revenue of 140 billion baht in the first nine months, up 2% year-onyear thanks to the growth of distribution and retail businesses.
The slight growth was affected by weak demand in the regional ceramics market.
Profit for the period totalled 4.8 billion baht, up 8% year-on-year.
In 2018, SCG Cement-Building Materials posted revenue of 183 billion baht, making up 12.6% of total revenue of Siam Cement Group (SCG).
Mr Nithi said the downturns of the global and local economies are expected to impact many business sectors in Thailand.
He projects the construction sector in 2020 to decrease further because of sluggish economic sentiment. New real estate will not expand as much as expected next year.
“Residential projects are projected to decrease 1% in 2020 while commercial buildings will grow 1% thanks to developers continuing to spend massive budgets on planned projects,” Mr Nithi said.
For renovated properties, SCG forecasts 7% growth in 2020 from this year, projecting a segment value of 30 billion baht.
Thailand’s construction materials are worth 1.4 trillion baht. The residential
‘‘ SCG will focus on all property types and adopt digital technologies to support services.
NITHI PATARACHOKE President, SCG Cement-Building Materials
segment makes up 50%, while infrastructure and commercial buildings account for the rest.
Chana Poomee, vice-president for cement and construction solutions, said SCG has adopted digital technologies to facilitate customers such as technicians, contractors and project owners.
“They need technologies for efficient cost management and to save on construction time,” said Mr Chana.
“They also want expert advice on various technical aspects.”
He said SCG has developed a network of technicians, trained by institutions to ensure their construction and installation standards.
SCG has 840 construction material transport companies to support its logistics nationwide.