PUBLISHED : 23 Oct 2024 at 05:41
Samart Group is foraying into green tech energy and carbon credit businesses to cash in on these global megatrends.
Teda, a subsidiary of Samart, will lead the development of these two new businesses for the group. It is now in talks with targeted businesses with a view to a joint venture deal or a merger and acquisition deal. A deal is expected to be concluded in the first quarter of 2025.
Samart Group has three major business groups — digital information and communications technology (ICT) solutions, digital communications, and utilities and transportation.
Watchai Vilailuck, Samart Group’s executive vice-chairman of corporate strategy and new business development, said Samart will expand its business empire into a fourth major business group — energy and environment business — in early 2025.
Teda is part of Samart’s utilities and transportations business group. Founded in 1975, it began with mechanical and electrical (M&E) systems installation in buildings and factories, then moved into high voltage transmission system construction in the early 1980s.
Teda booked 1 billion baht of total revenue and a net profit of 70 million baht last year. It also has a backlog worth 2.5 billion baht. The company is planning to submit its filing to list on the Stock Exchange of Thailand late next year.
Mr Watchai said the group has focused on three strategies to ensure stability and sustainability.
First, it is seeking new funding sources to broaden the group’s opportunities in acquiring new projects and to reduce its reliance on government projects.
Second, it is establishing new forms of business strategic partnerships to enhance business advantages and competitiveness.
Moreover, the company has enlarged its customer bases locally and internationally in order to establish long-term growth through the provision of comprehensive technology services.
Mr Watchai said that according to the group’s consolidated financial performance in the first half of this year, revenue from sales and contract works stood at 4.16 billion, representing a 7.4% decrease year-on-year. This was attributed to many projects having been postponed due to the delay in government budget spending, pending the formation of a new government.
Of the total, 56.2% was contributed by the company’s utilities and transportation sector, followed by digital ICT solutions (38.3%) and digital communications (5.5%).
The group has set a total revenue target this year of 12 billion baht, up from 10.3 billion baht last year.
Samart Group had a total backlog of 13.6 billion baht as of September 2024, which is expected to rise to 20 billion baht by end of the year.
As of September, Samart’s digital ICT solutions business had a backlog worth 3.8 billion baht, utilities and transportation sector had a backlog worth 8.6 billion baht, and digital communications had a backlog worth 1 billion baht.
Mr Watchai said the utilities and transportation business is now the major revenue contributor to the group. This includes Teda and Samart Aviation Solutions Public Co Ltd, a major shareholder of Cambodia Air Traffic Services Co Ltd. The latter is an air traffic and navigation service provider in Cambodia.
