Samart Group is projecting a strong finish for 2024, with substantial growth in the final quarter expected to push its project backlog beyond the Bt20 billion mark. The company is well-positioned for a robust year-end, driven by strong performance across its key business segments.
Mr. Watchai Vilailuck, Executive Vice Chairman of Corporate Strategy and New Business Development at Samart Corporation Plc., said the group has experienced promising growth over the past nine months, with all sectors showing upward trends and strong growth potential. The total backlog has reached nearly Bt14 billion, largely propelled by a standout performance in the ICT segment during the third quarter.
While some projects have faced delays due to postponed government budgets tied to the formation of a new administration. Mr. Watchai remains optimistic, anticipating a significant increase in revenue and profits in the fourth quarter, outpacing results from the previous three quarters.
Digital ICT Solutions Business Group:
SAMTEL, a key player within Samart’s Digital ICT Solutions Business Group, has secured new project contracts worth over Bt1.5 billion in the first nine months. These contracts include significant deals with the Industrial Estate Authority of Thailand, the Royal Thai Police, the Government Housing Bank, and the Department of Lands, boosting the group’s total backlog to approximately Bt4 billion.
The fourth quarter is expected to be the most active period for new project signings, with an anticipated total value of around Bt6 billion as government agencies ramp up budget utilization. Key upcoming projects include Core Banking initiatives and partnerships with the Provincial Electricity Authority. SAMTEL forecasts the total new project contracts for the year will reach approximately Bt7.5 billion.
Utilities and Transportations Business Group:
Samart Aviation Solutions Public Company Limited (SAV), a provider of air traffic management services in Cambodia, has reported a 7-8 per cent increase in flight volume over the past nine months. The company achieved a 12 per cent revenue growth in the first half of the year, while profits seeing a substantial 85 per cent year-over-year increase in the first two quarters.
This strong performance is driven by the Cambodian government’s economic and tourism stimulus campaigns, the introduction of new flight routes, and the launch of AirAsia Cambodia, which has boosted tourist arrivals. The rising trend is expected to bring more tourism opportunities and increased flight activity during the high season in the fourth quarter. Additionally, the air traffic management expansion project in Laos is progressing steadily, with the signing of an MOU expected in the fourth quarter.
Digital Communications Business Group:
Samart Digital (SDC), a subsidiary of Samart Group specializing in digital communication solutions and services, reported approximately Bt317 million in revenue from airtime services this year, generated through the Digital Trunked Radio System (DTRS) network under the Ministry of Interior’s command radio communication project.
Recently, SDC secured a 15-year contract extension from National Telecom Public Company Limited, creating opportunities to expand the DTRS user base among public safety organizations nationwide. With these developments, SDC continues to show steady improvement, with an annual revenue target set at Bt602 million.
Mr. Watchai emphasized that the new digital era presents significant opportunities for business expansion, prompting the group to continuously pursue new ventures actively. Teda, a subsidiary specializing in energy solutions and related technologies, is exploring and developing innovative projects in the energy and environmental sectors, including renewable energy initiatives like solar rooftops and carbon credit systems.
Meanwhile, the group’s Direct Coding project, designed to enhance tax collection efficiency for the Excise Department, is anticipated to expand into the pharmaceuticals, dietary supplements, and wine cooler sectors.
“We’re well-prepared in both management and financial stability. To strengthen our working capital, we’re utilizing bonds as a strategic tool to facilitate business expansion in line with the group’s objectives,” Mr. Watchai said.
Samart’s first bond offering in 2024 attracted significant interest, with subscriptions reaching Bt643 million, representing 85 per cent of the total offering. The group is set to launch a second bond offering later this year, consisting of a two-year bond with an interest rate of 5.2 per cent per annum and quarterly interest payments. This new offering will be available to institutional and large investors, with subscription dates scheduled for November 5-7, 2024.
The funds raised will be allocated to repay bonds maturing in January 2025, totaling Bt1.675 billion, as well as to support the group’s ongoing business operations and facilitate further growth initiatives.
