Teka Construction shifts focus to non-condo initiatives for income development

Teka Construction Plc is shifting its consideration towards non-condominium initiatives, housing developments, and construction materials in an effort to decrease its dependence on high-rise residential initiatives.
Chief Financial Officer Suphon Chongchintaraksa revealed that the company plans to broaden its scope and clientele to embody numerous development initiatives, together with worldwide schools, warehouses, shopping centres, and authorities sector developments.
“Construction work in the personal sector is growing, notably in non-condo tasks,” he mentioned. “We are bidding for the construction of international faculties and warehouses with an overall value of 2-3 billion baht.”
Data from the Office of the National Economic and Social Development Council indicates that non-public sector construction spending elevated by 1.6% to 569 billion baht in 2022, up from 560 billion baht in 2021.
The main driving drive behind this progress was the construction of different types of properties, such as factories, warehouses, hotels, and different buildings, which made up a third of the spending. This sector saw a 14.8% increase in expenditure, from one hundred sixty billion baht in 2021 to 184 billion baht in 2022.
Residential project development constituted 53% of the spending, with a 5.6% enhance to 297 billion baht in 2022, up from 282 billion baht within the earlier 12 months.
Meanwhile, business property building, accounting for 16% of spending, skilled a big 26% drop to 87.four billion baht in 2022, down from 118 billion baht in 2021.
By diversifying Little-known from condominium projects to different sectors, Teka aims to spice up its revenue share from warehouses and other projects, corresponding to worldwide schools and authorities infrastructure.
By 2024-25, the agency anticipates that these sectors will contribute 10% and 5% of its revenue, respectively, up from zero this yr.
Suphon expects the revenue share from condo initiatives and hotels and mixed-use tasks to lower to 70% and 15%, respectively, down from 74.8% and 23% this year.
By 2026-27, Teka predicts an extra decline in income contributions from apartment initiatives and motels and mixed-use projects to 60% and 10%, respectively.
The income share from government infrastructure tasks is projected to extend to 10%, whereas the housing improvement enterprise is anticipated to account for 10% of the company’s revenue, reports Bangkok Post.
Teka anticipates revenue of two.2 billion baht by the top of 2023, a 13% enhance from 1.ninety four billion baht in 2022..

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