Chonburi Concrete Product (CCP) expects 2011 will produce its best performance in four years as supply disruptions in flood-affected areas have prompted demand to shift to the eastern part of the country, while product prices have risen as well.
Managing director Chakrit Theepakornsukkasame said that because many businesses had to suspend production due to flooding and logistics difficulties, developers and contractors turned to material suppliers in the eastern region including CCP.
Meanwhile, the sharp rise of raw material prices, especially sand, has driven up the prices of building materials. Lightweight concrete, for example, has increased to 20 baht per block from 17 baht two months ago.
The supply shortage is expected to intensify in the first half of 2012 when the floodwater subsides and rehabilitation starts, increasing building material prices further, cited Mr Chakrit.
"Our market share doubled in November from a month earlier. We have increased capacity utilization to around 80-90% and expedited efficiency marginally," he noted.
"We expect more companies to relocate their production from the western regions or set up manufacturing or logistics center in the east. Housing projects will also shift to the eastern part of Bangkok."
The SET-listed building material supplier has made a major turnaround with a consolidated net profit of 25.6 million baht over the first nine months of this year, compared to a net loss of 10 million in the same period of 2010. Revenue totaled 1.68 billion baht, up 7.5% year-on year.
For the third quarter, earnings rose to 11.6 million baht from 4.5 million a year earlier as revenue inched up 4.73% to 576.6 million baht.
As of October, CCP had a backlog of 2.33 billion baht, including 1.45 billion of ready-mixed concrete and 885 million for per-cast concrete. The company has been awarded two contracts for the Purple mass transit rail line and four contracts for the Blue Line.
"Some mega projects have been suspended this year but we expect many more contracts will be tendered next year," Mr Chakrit said. These include irrigation and water treatment projects.
Shares of CCP closed yesterday on the Stock Exchange of Thailand at 2.48 baht, up two sating, in trade worth 2 million baht.
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