SCI Electric Plc was listed on the Stock Exchange of Thailand in October last year. CEO Kriangkrai Pheanvitayaskul discusses the company’s strategy and outlook.
Please explain SCI’s history.
SCI started 50 years ago, focused on electrical power systems. Over the years as Thailand developed, specifically with the industrial estates and development zones such as Map Ta Phut, we were able to expand further into switchboards and cable trays.
As the market in Thailand grew further we acquired technology from both Japan and Australia to include galvanised products and added towers for telecommunication and steel structures. In 2016, we expanded internationally, first to Laos, the “Battery of Asia”, where we invested in a 3.2-megawatt hydropower plant that has been commissioned since 2013 and developed a strong reputation as an engineering, procurement and construction (EPC) contractor.
What is your business model today?
Today we have four core businesses starting with manufacturing, designing and installing electrical switchboards and distribution boards. We also manufacture cable trays and supporting systems for electrical switchboards. Secondly, through our subsidiary Ajikawa & SCI Metal Tech, we manufacture steel fabrication structures including power transmission and telecommunication towers, steel structures and substations as well as other galvanised steel fabrication. For these businesses, the main customers are contractors or project owners such as factories, Egat, the MEA, PEA and so on.
We have also expanded into EPC services for power transmission and distribution systems such as high-voltage transmission lines, power substations and distribution systems. We were awarded the main contract for the Power Distribution System and Rehabilitation Project Phase 1 (PDSR1) with a value of US$94 million in Laos in 2013, and recently received a $416-million contract from Electricite du Laos (EDL) to proceed with a 500/230-kilovolt transmission line and substation project.
Finally, we have a renewable energy and utilities business that includes the 3.2MW hydropower plant in Savannakhet province in Laos. As well, we recently began a joint venture with Property Perfect Plc to invest in several renewable energy and utilities businesses including power plants, solar rooftops and a tap water business.
AirAsia mulls Thai hub – AirAsia, the continent’s largest no-frills airline group, is keen to boost its position in Thailand with the relocation of its regional nerve centre from Indonesia to here. In a discussion with Prime Minister Prayut Chan-o-cha yesterday, AirAsia chief executive Tony Fernandes said the group would also like to build its own airports in Thai provinces such as Surat Thani. Furthermore, AirAsia is interested in a partnership with flag carrier Thai Airways International (THAI) to create a business synergy without equity partnership or competition, said Deputy Prime Minister Somkid Jatusripitak. AirAsia wants to strengthen its presence in Thailand, which it perceives as a gateway to Asean with significant growth potential in aviation businesses, said Mr Somkid. (Bangkok Post, 30/4/16)
Comment: It would obviously be a huge positive for AirAsia if they can pull it off here in Thailand, but would the government be willing to throw away a monopoly?
AGE expects revenue of Bt300mn from the service business. It expects to increase export portion to 30%. It is confident that 2016 revenue will grow 10% supported by coal business recovery and it has backlog of Bt200mn. (Thun Hoon, 3/5/16)
Comment: I’ve heard about a supposed recovery in coal since…2011?
Central, partner buy Big C VN for 920m euros – CENTRAL GROUP in partnership with Nguyen Kim Group yesterday announced the acquisition of Big C Vietnam from France’s Casino Group for 920 million euros (Bt36.6 billion). Central said the acquisition represented the strength of its will to keep expanding its business in Asia. “Central Group and Nguyen Kim Group have officially acquired Big C Vietnam, which has been operated for more than 18 years,” said Tos Chirathivat, CEO of Central Group. He said Big C Vietnam had 43 stores nationwide, comprising 33 hypermarkets and 10 convenience stores, and 30 shopping malls. “Total revenue in 2015 was approximately 586 million euros.” (The Nation, 30/4/16)
Buy(s) – THB 344 mn
- BDMS – And he’s still buying ! This time another THB 279 mn worth of shares
- IFEC – Well they seem to trying to turn this into a “buy whatever we can” company
Sell(s) – THB 994 mn
- JWD – Already in the news that this was a block sale to Templeton
- SCI – See above
- CRANE – The jump in the stock price led to him selling?
Buy(s) THB 337 mn
- SCI – This part of the transaction looks to be a switch between shareholders
- IFEC – No idea what K. Wichai is doing buying @ 7.29 and selling @ 7.20
Sell(s) THB 802 mn
- SCI – See above, plus there was news that 2 funds bought 5% of shares in the co
- PACE – Hmmm thats a substantial sale from one of the owners.
- IFEC – See above
- TVT – Well if your company was making THB 55 mn p.a. and the stock was trading @ 1.7 bn wouldn’t you sell too?