Thailand political situation in year 2016 was more stable than the year 2015 leading to stronger economic stability of the country under government’s policies on commitment and encouragement of Thailand’s economic development into new sustainable economic structure. The government first package of economic stimulation measurement was investment on basic infrastructure which generating more monetary liquidity of the economic system including of private sectors’ consumption and investment. Such economic stimulation measurements is driving construction sector and related construction industries to early stage of growth resulting to the Company’s positive trending.
Overview of the Company’s operating results in year 2016 was in good expansion compare to year 2015. Total revenue of the Company in 2016 is 319.10 million Baht significantly increasing from the 2015 which was at 238.93 million Baht which is 33.56% increase from last year. The profit of 2016 is 32.18 million Baht significantly increasing from the 2015 which was at 3.39 million Baht which is 849.26% increase from last year. The increasing of revenue and profit were the results that PPS has been awarded of a mega project for Supervision services of construction project for the second phase of Suvarnabhumi International airport. Furthermore, many projects of the Company were in full growth period.
The government sector’s portion of our revenue in 2016 is increasing as planned since early of the year however we will not drop down our strength in the private sector’s market. Furthermore, we are in penetration into new markets and new potential customers as business partner to ensure our secured revenue. In 2016, we have successfully expanded into factory sector and data center projects.
The AEC market was unsuccessful in 2016. The project in Vientiane; Lao PDR obtained since late of 2015 was cancelled from customer’s decision. Our effort to obtain other projects in Lao PDR throughout year 2016 was unsuccessful. For Cambodia market, we have only engineering design work from a subsidiary company without expansion to higher revenue from construction management services. There is uncertainty on initiation of projects in Myanmar market from obstacle of local legal and regulations. Therefore, revenue portion from AEC market in 2016 was not significant portion.
As per market segment, the total revenue in 2016 came from local market for 300.13 million Baht which could divided into private sector for 230.17 million Baht (72.13% of total revenue) and public sector for 69.96 million Baht (21.92% of total revenue) while the revenue from foreign market is 6.79 million Baht which is 2.13% of total revenue.
For the year 2017, we have developed growth strategies as follows:
1. Local Market
We consider the local market as the main market of the business. In 2017 we see the public sector growth is the main drive of the local market especially the government’s policy of infrastructure investments. We still moving forward on private sector market from both existing and new customers and alliances. We see more confidence of new investment of private sector resulting from government’s continuous economic stimulation measurements. We target our total revenue on 2017 on 15% growth from previous year.
2. Foreign Market
The revenue from AEC market in 2016 is under target as our attempt on expansion into construction management services in AEC market was unsuccessful. However, we see opportunity from our successive design works in Cambodia and engineering design work and construction management services in Vietnam market under alliance with Swan & maclaren Group Pte.Ltd. (SWAN) from Singapore.
3. Design Work
PPS Design Co.,Ltd. (PPSD), our subsidiary company and Swan & Mclaren (Thailand) Co.,Ltd., our joint company are alliance by submission of co-proposal on design work. Swan & Mclaren (Thailand) Co.,Ltd has obtained design work of large scale project which will significantly recognized of revienue in early of 2017.
4. Improving Competitiveness Through Innovation and IT
Our IT utilization policy is now moving forward. We see IT utilization as our enhancement of our people and process competitiveness throughout 2016. The company has been investing in development of innovation and IT technology together with PPS Information Consultant Company Limited (PIC). We are targeting that all of our projects and our internal process to be fully utilized on our innovation and IT in 2017. Our competitiveness enhancement not only generate Company’s sustainable business for long term but also provide opportunities for PIC to roll out this innovation and IT tools to related construction businesses.
In the year 2016, I am very pleased to inform that PPS has received an award in the Thailand Sustainable Investment 2016 as part of SET Sustainability Awards 2016, received Excellent Innovative Organization Award of TIM Forum “Innovative Organization to Sustainability in SET” and has been rated five stars for good governance. These awards are the results of our commitment towards sustainable development which we will continuing on without hesitation.
In conclusion, I strongly believe that we will successfully grow in 2017 continuing from 2016. Our developed strategy and mission are in implementation which will provide us on a course of the Company’s prosper sustainably together with our society and our country.