Teka Construction Plc is shifting its attention in the path of non-condominium projects, housing developments, and development materials in an effort to lower its dependence on high-rise residential tasks.
Chief Financial Officer Suphon Chongchintaraksa revealed that the company plans to broaden its scope and clientele to encompass varied development initiatives, together with worldwide schools, warehouses, buying centres, and government sector developments.
“Construction work in the non-public sector is rising, particularly in non-condo initiatives,” he said. “We are bidding for the development of international schools and warehouses with an total worth of 2-3 billion baht.”
Data from the Office of the National Economic and Social Development Council indicates that personal sector development spending elevated by 1.6% to 569 billion baht in 2022, up from 560 billion baht in 2021.
The primary driving drive behind this growth was the development of different kinds of properties, similar to factories, warehouses, motels, and other buildings, which made up a third of the spending. This sector saw a 14.8% improve in expenditure, from one hundred sixty billion baht in 2021 to 184 billion baht in 2022.
Residential venture development constituted 53% of the spending, with a 5.6% increase to 297 billion baht in 2022, up from 282 billion baht in the previous yr.
Meanwhile, commercial property building, accounting for 16% of spending, experienced a major 26% drop to 87.four billion baht in 2022, down from 118 billion baht in 2021.
By diversifying its focus from condominium projects to different sectors, Teka goals to boost its revenue share from warehouses and different tasks, similar to worldwide colleges and authorities infrastructure.
By 2024-25, the agency anticipates that these sectors will contribute 10% and 5% of its income, respectively, up from zero this year.
Piece of cake expects the income share from condo projects and hotels and mixed-use initiatives to decrease to 70% and 15%, respectively, down from 74.8% and 23% this yr.
By 2026-27, Teka predicts an extra decline in income contributions from apartment projects and motels and mixed-use tasks to 60% and 10%, respectively.
The revenue share from government infrastructure tasks is projected to increase to 10%, while the housing development business is anticipated to account for 10% of the company’s income, reports Bangkok Post.
Teka anticipates revenue of 2.2 billion baht by the top of 2023, a 13% enhance from 1.ninety four billion baht in 2022..