SNC Former, a SET-listed manufacturer of metal pipes and parts for the airconditioner industry, is seeking merger and acquisition opportunities with an aim to double its sales revenue to 20 billion baht in the near term.
CEO Somchai Thaisanguanvorakun said the company was in talks with several firms about mergers and acquisitions.It hopes to close a deal with one company with capital of around 1 billion baht and sales revenue of 5 billion baht.
"It's likely the deal can be concluded soon," said Mr Somchai, adding the deal could enhance SNC's business restructuring opportunity and increase its production capacity."Right now we're waiting to settle the price," he added.
SNC does not plan to increase capital as it has cash on hand of around 1 billion baht.
Normally the company targets revenue growth of around 20% each year. However, last year its revenue rose by 67% to 8.28 billion baht and net profit surged by 176% to 381.32 million baht. In 2009,its total revenue stood at 4.95 billion baht while net profit accounted for 138.72 million baht.
The company also expects its orders to increase as manufacturers in Japan affected by natural disasters are likely to suspend their production temporarily.
According to Phillip Securities re-search, SNC's sales revenue is expected to jump by 26% to 10.37 billion baht and net profit by 46% to 555 million baht.
The company manufactures pipes,sheet metal, plastic parts and heat exchangers.
SNC's upstream production capacity has increased from 28% last year to more than 30% this year, the research noted.
SNC shares closed yesterday on the SET at 19.90 baht, down 20 satang, in trade worth 3 million baht.
31 March 2011