Financial News

Samart Group Expects Continuous Growth in the 2nd Half of the Year: Over 10 Billion Baht Worth of Projects

Samart Corporation has announced the Q2 revenue of 3,014 million baht. The ICT business now has various projects of over 8,246 million baht and is expecting to place bids for 10 billion baht projects. Samart Digital, after its transformation from a mobile business to a complete digital business, is doing extremely well in the new business of which the revenue shall be realized in the 2nd half of the year. Utilities & Transportation business is going great as well, with over 2 billion baht worth of projects in the 1st half of the year.

Mr. Watchai Vilailuck, President , Samart Corporation Plc., revealed that “During Q2, each business performed very well, especially the ICT business led by Samart Telcom, which signed contracts for new projects of over 3,226 million baht in total, including the 2,768 million baht IT system development project for lands (2nd phase) with the Department of Lands. As of now it is handling over 8,246 million baht worth of projects. One to One Contacts has earned 180 million baht during Q2 alone, which increased by 9.2 million baht from the previous quarter. The main contribution was additional services for existing customers. The current projects have added up to over 770 million baht. As for the energy business, TEDA, which is an expert in power station and high-voltage cable construction, has been contracted to work on the Charansanitwong Rd. overground-to-underground cable transformation project for the Metropolitan Electricity Authority and the Lampura Power Plant construction project for the Electricity Generating Authority in Trang, which are over 2 billion baht worth altogether. There are still a lot more opportunities for the business to advance. For the digital business, after the major transformation, the business becomes more and more defined, which means more chances to grow and make profit in the future – including the “TripPointz” application which is a collaboration with TAT to encourage tourism in 12 minor cities. Today there are more than 50,000 downloads. Other 2 businesses that are expected to support the digital business in the 2nd half of the year include the Digital Trunk Radio System (DTRS) under CAT’s network which is the biggest in Thailand with over 60% of the system and stations constructed and 1,000 expected countrywide by the end of the year. The target groups clearly include government organizations, enterprises, companies, industries and services that require high-quality communication system such as logistics and transportation business, plants and industrial complexes, hospitals, emergency and rescue centers. Another project is the construction of over 1,000 co-towers in national parks to provide efficient phone reception for tourists.

In conclusion, Samart Group’s performance in the 1st half of the year included 5,444 million baht revenue and 169 million baht loss. The main factor was the Fx loss for loans in US Dollars during Q2/2018. Nevertheless, Samart Group announced the dividend rates of 0.04 baht for One To One Contacts and 0.15 baht for Samart Telcom.

Mr. Watchai concluded “Despite not achieving the goal in the 1st half of the year due to the i-mobile business transformation, in the 2nd half the results will be clearer with the realization of revenue from new businesses and the support from the government’s 4.0 policy. That will provide Samart Group with opportunities to place bids in projects of over 10 billion baht in total and support the growth of our digital technology.”