Regarding economic views on the transformer market in 2018, we expect higher demand for electricity from government mega projects and investment promotions. Every project or industry that grows will need to use transformers.
Thailand’s economy grew by 3.3 percent in the first half of 2017 from growth in household spending and exports. However, government spending slowed from delayed disbursement of investments under additional budgets of 2017 and investment in construction dropped. Nevertheless, Thailand’s economy improved when compared to other ASEAN countries in the latter half of the year by 4 percent boosted due to continually improving exports and tourism.
Estimates for 2018 projected growth in the Thai economy at 4.00 percent driven mainly by government spending on public utilities. Clarity regarding upcoming elections has also built the business sector’s confidence while triggering more private investments in the country. In the area of overseas demand, the economies of Thailand’s trading partners are expected to have good growth trends, causing Thai exports and services to grow continually.
The Company’s business is mainly dependent on domestic markets and the economy. Therefore, the Company’s business will slow down from competition in the industry and dependence on investments by the government sector. Thus, the Company focused on overseas business growth over the past year, causing sales in overseas markets to grow from the previous year by 120 percent in addition to expanding to other energy-related businesses by raising capital to participate in joint ventures or suitable investment models for the Company’s situation and future trends. The Company acquired the properties of L Solar 1, an 8-megawatt solar power plant, and the Company continues to seek business opportunities to grow the business from the beginning to the end in order for the Company to have secure, strong growth.
In terms of internal management, the Company continues to improve personnel and use modern technology to compete in the country and overseas. Furthermore, the Board of Directors places a great deal of importance on good governance. In 2017, the Company achieved excellent corporate governance assessment scores for the third consecutive year and received the Thai Chamber of Commerce Business Ethics Standard Test Award from the National Anti-Corruption Commission (NACC).
The Board of Directors would like to thank our patrons, stakeholders and associates domestically and abroad who have always supported the Company. We would also like them to rest assured that the Board of Directors will manage at full capacity with determination to govern the Company to grow with security and sustainability. On behalf of the Board of Directors
Mr. Krirk-Krai Jirapaet
Chairman, Board of Directors