BKD – A Mouth-Watering Share for Thai Investors
After acquiring the big project worth 3 billion baht in Myanmar, BKD has become one of the shares that have been discussed widely.
Bangkok Dec-Con Public Company Limited (BKD) has signed a MOU worth 3 billion baht as an architectural and interior decorator for Loi Kham Residential Community, a residential project in Myanmar.
The project is considered the biggest in value since BKD has been established, and will receive the payment from 2019-2021 in succession or about 1 billion baht per year for a clearer picture.
When we look back at BKD’s revenue from 2014, we would find that the company earned 906.83 million baht in 2014, 1.15 billion baht in 2015, 1.37 billion baht in 2016 and 1.89 billion baht in 2017. The data has shown that BKD is constantly growing each year.
Now, let’s look at the Loi Kham project that would yield 1 billion baht per year. Just by this one project BKD has earned more than half of 2017’s revenue!
However, BKD’s profit margin is still something that needs to be considered, otherwise no matter how much you earn, it would not do you any good if you do not have profit.
Looking back at BKD’s net profit margin on the same period as aforementioned, BKD gains 10.41%, 13.79%, 5.77% and 17.56%, respectively. Meanwhile, the net profit margin after the 2Q18 has increased to 19.55%
Ms. Nathanun Prasongchaikul, the only heir of Mrs. Nuchanart Ratanasuwanachart, BKD’s chairman of executive committee managing director, has quoted an interesting line saying that the base margin for international projects has to be higher than the projects in Thailand.
The interesting part is that all of the above number that we have mentioned are all domestic projects! Is it possible to imply that the “margin” from Loi Kham project will raise BKD’s net profit significantly in three years from now?
We will not get an answer regarding this matter since BKD said nothing more than the statement that the margin from international project will be higher….
Nevertheless, the fact that Loi Kham is the biggest project for BKD may reflect on the manufacturing capacity of BKD. It is possible that after shifting their work to focus on Loi Kham project, the company may gain lesser domestic projects.
Despite that, BKD has shown that it always have satisfying profits when working in its profession, which is decorating. And Loi Kham project is one of that!
Moreover, BKD will also realize the income from its investment in water power plant in Phang-nga and Phuket starting from the end of this year. Finansia Syrus Securities estimate that this will yield an additional ฿0.80 to BKD’s shares.
This will be the share worth keeping an eye out for in a few months or a few years.