BJCHI to Activate a Turnaround Mode after Recording 2Q19 Profit of ฿15 Million

BJC Heavy Industries Public Company Limited (BJCHI) has stated that the company is ready to make a come back in 2019. Mr. Young Jun Lee, CEO of BJCHI stated that while the business is in the normal situation after acquiring a big project of THB 3,000 million in the petrochemical industry, reaching THB 4,000 million of the backlog. The backlog is the main factor to support the revenue and continued profit growth until 2021.

In 2019, BJCHI also has a chance to bid the project in value of THB 20,000 million. For the 1H2019 turnover presented a positive signal of earning a net profit of THB 15 million when compared to the same period of the previous year net loss of THB 99 million.

Mr. Young Jun Lee is confident that BJCHI’s performance in 2H2019 will continue to grow with strong earnings when compared to the 1H2019 that recorded a net profit of THB 15 million. After BJCHI has gradually continued to recognize the revenue from the backlog, currently, BJCHI has cash flow more than THB 1,000 million and debt to equity ratio (D/E) lower than 0.2x. In 2Q2019, BJCHI recorded a profit from the operating result which recorded a gross profit margin of THB 151 million and a net profit of THB 12 million. An increase of 2Q2019 profit was mainly due to the revenue recognition from the increasing of oil and gas industry projects.

Recently, BJCHI acquired a big project in the oil and gas industry with the value of THB 3,000 million in domestic and overseas. Most of the work is about steel fabrication and modularization work which BJCHI is the expertise and experience in executing large-scale international modularization projects. The total value of the new project is THB 1,000 of on-hand projects, meanwhile, BJCHI has a total THB 4,000 million of the backlog which gradually recognizes the revenue from 2019 to 2021.

Mr. Young Jun Lee said, “Acquiring a big project in oil and gas industry is a starting point of BJCHI’s turnover to recover in the near future after facing a slowdown of the industry in the past 2-3 years.”

Moreover, BJCHI is looking forward to seeing the bidding result of the high potential project with a value of THB 20,000 million. BJCHI believed that this project will help to increase an opportunity for BJCHI to acquire more work in the future and support BJCHI’s turnover to continuously grow.