TNDT’s New Direction: Moving From Niche to Mass

Thai Nondestructive Testing Public Company Limited (TNDT) is a small-cap stock and far less liquid with low daily trading volume, perhaps unsurprisingly, this stock was ignored by investors, despite the fact TNDT has good operational performance.   

 

TNDT has continued to earn profit consecutively for the last four years, in 2016, the company reported a total revenue of 345 million baht with a net profit of 24 million baht. In 2017, the income was at 320 million baht with a net profit of 21 million baht. Despite posting a net loss of 87 million baht in 2018, TNDT a year later was able to return to a profit of 21 million baht.

 

The key factor of being less popular stock is that the core business of TNDT focus on NDT related services, especially for Engineering Inspection and Nondestructive Testing, which considered as a niche business with a specific target customers, putting a limit on the business growth. 

   

TNDT acknowledges the problem and is seeking for opportunities for business growth

 

Previously, TNDT has invested in a 20 MW Coal-Fired Power Plant in Myanmar in order to strengthen its operation growth, along with the study for solar rooftop project.  

 

Short while ago TNDT has teamed up with partners in Indonesia to establish a joint venture namely TNDT Inspection and Consultation to expand the electric power installation operation and maintenance and related business in Indonesia. According to shareholding ratio, TNDT will hold 95% stake and Indonesian partner will hold 5%. Expecting to recognise a revenue of more than hundred million baht from 2021 onwards.      

 

However, TNDT has started the first quarter of 2020 with a net loss of 1.3 million baht, a 113.67% drop year-on-year and a 7.18% fall year-on-year in total revenue. 

 

Interestingly, after adjusting its business strategy, will TNDT attract more investors? Let’s anticipate TNDT’s operation results for 2Q20.