TKS Technology Public Company Limited or TKS sends six business trends in the second half of the year to be better than the first half. Sales in Q3 and Q4 are expected to recover from Q2 due to increased project work and anti-counterfeit label business. and a share of profits from SYNEX’s affiliate company, which enters the high season of the business, “Adultan Mongkolsuthi”, the general chief, raises a strategy towards Tech Ecosystem Builder, continuing to invest Create long-term sustainable growth
Mr. Jutiphan Mongkolsuthi, Chief Executive Officer of TKS Technology Public Company Limited or TKS, the country’s largest full-service security printing operator, disclosed that business trends in the third quarter of 2022 are expected to recover from the last 2nd quarter of a backlog that continues to deliver and gradually revenue will be recognized, while in the last quarter of the year in the 4th quarter of the year there will be more sales from project work and anti-counterfeit label business. Supporting overall revenue in the second half to grow from the first half And as a result, in terms of net profit, we still believe it will grow strongly compared to the previous year. It is expected to grow in double digits, both in terms of operating profit and profit share from the related company Synnex (Thailand) Public Company Limited or SYNEX, entering the high season of the IT and smartphone business
In terms of the company’s growth strategy in the second half of 2022, TKS continues to focus on maintaining sales in its core business segment while focusing on businesses with potential for growth, ie Security Label and Platform Solutions, which are profitable. The plant is tall compared to the main business group. Management has continuously emphasized operational efficiency (Operating Efficiency). Whether to manage working capital to an appropriate level to increase liquidity and reduce financial costs Use automated production processes and control operating costs To ensure that the performance will be in accordance with the plan and budget. while there is progress in installing new machines to enter the label and packaging business market Currently in trial production and product quality testing. Full revenue recognition and production is expected to begin from the 4th quarter of this year.
“By the implementation strategy in 2022, TKS’s business picture will shift to more of a Tech Ecosystem Builder and continue to invest continuously. to create long-term sustainable growth Currently, TKS is on the right track, with the COVID situation strengthening our company. Believe that this is the year to do a good job. It will grow in 3 main businesses namely Fulfillment Solution, Label and Packaging Solution and Platform Solution, which is expected to grow continuously from the previous year,” said Mr Jutiphan.
for an investment in the company Metro Systems Corporation Public Company Limited (MSC) with 32.40 million shares, representing 9% Holding shares of TKS is considered to fulfill the potential of a Tech Ecosystem builder as it is the country’s best System Integrator and is has increased operating performance compared to the last 12 months, compared to the same period in the last 3 years, and a high dividend payout ratio, TKS will be able to recognize additional profits from such dividends since 2023.
After the latest investment in Dezpax, a food-beverage packaging startup by Next Ventures Company Limited (subsidiary), continues to look for new business investment opportunities. Another 2-3 deals are still in discussions to invest with partners in new deals. this year and next year And this is considered to transform TKS’ new business model from Print Security to Tech Ecosystem Builder in line with the company’s new strategy and to create long-term sustainable growth.