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CCET expects revenues to jump
(Bangkok Post (Thailand) (KRT) Via Acquire Media NewsEdge) May 16--Cal-Comp Electronics (Thailand) Plc (CCET) expects revenues to rise to 110 billion baht this year as it shifts away from component assembly work to finished product production.
Naririn Tantisajjatham, a CCET director, told investors this week that the opening of its new $10 million plant in China in the fourth quarter would also help support revenue growth.
CCET posted first-quarter profits of 616.9 million baht, down from 709.69 million the year before. Sales revenue rose 10.3 percent year-on-year to 23.4 billion baht thanks to rising orders for computer peripherals and PC board assembly for hard disk drives and mobile phones.
The firm reported 2007 profits of 2.9 billion baht on revenues of 94.15 billion. Mrs Naririn said the new Chinese plant was expected to boost revenues by $15 to $20 million per month.
She said the company needed to expand its customer base and business scope to help compensate for shrinking margins due to heavy market competition. Net profit margins fell to 2.63 percent in the first quarter from 3.33 percent in the same period last year. CCET's gross profit margin was 4.73 percent in the first quarter, down from 5.01 percent the same period last year.
Mrs Naririn said the gross profit margin was expected to average between 4 percent to 5 percent this year. The company was also increasing its research and development activities and expanding its original design manufacturer (ODM) business to boost its competitiveness.
CCET also plans to invest $40 million for new machinery to expand its production lines in Phetchaburi and in China. The company operates 10 plants, six in Thailand and four in China.
Exports currently account for 75 percent of the company's revenues. Computer equipment represents 81 percent of sales, with telecom equipment another 18 percent and the rest office equipment.
"The decline in performance is quite normal as the first quarter is typically weak on seasonal factors. The overall macroeconomic environment also is difficult, due to the US economic recession and appreciation of the Thai baht," Mrs Naririn said.
Shares of CCET closed yesterday on the SEt at 5.65 baht, unchanged, in trade worth 18.9 million baht.
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Copyright (c) 2008, Bangkok Post, Thailand
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