Electronics Firm Targets 45% Growth

After two years of business restructuring, Team Precision Plc, the first listed company on the Market for Alternative Investment (MAI), expects revenues to grow by as much as 45% this year along with improved profit margins.

The electronics firm is also set to move to the Stock Exchange of Thailand this year.

Managing director Chakkaphant Manutsathit said growth forecast was based on a higher profit margin, material cost-control improvements and the global cyclical upturn in the electronics export industry.

The printed circuit board assembler posted revenue of 735 million baht in 2002, a 23% increase from the previous year. Net profit rose 36% to 48.33 million baht, while the profit margin was 19%.

Mr Chakkaphant said the company was spending 85 million baht this year to lift its production capacity of surface-mount technology by 20%.

Of the total, 45 million baht would go to build a new production facility and the remaining 40 million would be used to buy new machinery, which should be operational by year-end.

The company's factory utilisation capacity is currently 70-80% and is expected to reach 80-90% later this year.

Mr Chakkaphant said the company would shift its focus to industrial electronics products this year, away from consumer electronics, because of the higher profit margin and brighter outlook.

The company also seeks to increase its proportion of exports to Europe, while reducing its proportion of exports to the United States. Team Precision expects to pay a dividend of 53 satang per share to shareholders on May 22.

The company's shares closed yesterday at two baht, down six satang, in trade worth 4.96 million baht.

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