SO Siam Ratchathani is strong. Growing through the Covid Crisis Profits soar 41%
Date 14 Aug 2021 time 08:24
SO Siam Ratchathani is strong. Growing through the Covid Crisis Profits soar 41% with ‘Nattaphon Wimolchalao’ as CEO to drive new business instead, effective September 1.
Mr. Nattapon Wimolchalao, Chief Operating Officer of Siam Rajathanee Public Company Limited or SO, a leader in outsourcing services business, revealed the results of the first half of 2021 or from 1 Jan.- June 30, 2021 that the company had a net profit of 83.17 million baht, an increase of 41 percent from the same period last year that made 58.99 million baht, while revenue was at 1,025.86 million baht, a slight decrease of 0.12% from the same period of the year. Before doing it, 1,027.09 million baht
In addition, gross profit margin (Gross Profit Margin) and net profit margin (Net Profit Margin) continued to increase. The gross margin increased to 19% y-o-y at 17.4% as the gross margin was mainly driven by an increase in gross profit from rental and service from term contract renewal. long with a government agency customer and providing data recording services Likewise, net profit margins have also increased in the same direction. It rose to 7.7% compared to only 6.3% in the same period last year.
However, if considering the type of income Revenue from personnel management for the first half of 2021 was 887.09 million baht, a decrease of 1.19% compared to the same period of the previous year at 897.78 million baht, which was the impact of the Covid-19 epidemic. that affects the income of overtime pay and valet parking services due to the spread of COVID-19 in Thailand started
However, rental and service income for the first half of 2021 still increased by 7.74%, reaching 121.51 million baht, compared to 115.56 million baht in the same period last year, as a result of car rental service income. The company has a large government agency customer with a long-term contract. The contract is for a period of 5 years, which makes the company start recognizing revenue from the said contract since April 2020, as well as recognizing profits from the sale of rental assets and other income. that has also increased
However, if looking at the quarterly results, in the second quarter, the company had a net profit of 44 million baht, an increase of 12.82% from the first quarter of 2021, which was 39 million baht, and also an increase of 76% from the same period last year at 25 million. Baht. As for the revenue of the second quarter, the company had the same income as the first quarter of 2021, which was at 506 million baht, but compared to the same period of the previous year, the income increased by 3.68%, with the revenue of the second quarter of 2020 at 488 million baht.
“It can be seen that although the company’s revenue has decreased slightly. But other financial figures since net profit gross margin and the net profit margin improved. In addition, the company’s financial position is very strong compared to the end of 2020, since the debt-to-equity (D/E) ratio of 0.70 times, from the year-end of 0.76 times, the return on assets (ROA) increased to 9.66%. From the end of last year it stood at 9.08% and the return on equity (ROE) increased to 17.09% compared to the end of last year at 15.98%,” said Mr. Nattapon.
In this regard, the Company has approved the payment of interim dividends. From the operating results of the Company in the first half of the year at the rate of 0.20 baht per share, totaling 74.39 million baht by specifying the list of shareholders who have the right to receive the interim dividend (Record Date) on August 27 2021 and the interim dividend payment date is 10 September 2021
However, the latest Board of Directors meeting Has resolved to approve the appointment of Mr. Chiranu Kulchanarat as the Chief Executive Officer instead of Mr. Krai Wimolchalao, while still providing advice and assistance in controlling the management and Mr. Nattapon Wimolchalao as the Chief Executive Officer. All of these are effective from September 1, 2021 onwards to support new business technologies. to happen and in accordance with the current situation
Mr. Nattapon added that The better performance is partly due to the continued spread of COVID-19, resulting in large companies or corporations. Especially the private sector turned to outsourcing in order to control operating costs more. The company aims to expand its large private sector customer base by 15% by the end of this year. From the current share of private income at the end of June 2021 is at 34% and also aims to increase the share of the private sector to more than 50 % within the next 2 years or within 2023.
Recently, the company has just won 3 contracts worth a total of 460 million baht from the Provincial Electricity Authority. Siam Commercial Bank and Toyota Motor Thailand Co., Ltd., who have contracted 2-3 years in the service business group (SO PEOPLE) that will help create jobs and generate income for drivers, totaling more than 600 positions
“The better gross margin and net profit margin This is partly a result of the company’s cost reduction policy, Lean Management since mid-2020, while maintaining sales and administrative expenses (SG&A). ) at a level that is not different from the same period last year, at the end of June 2021, at 10% from the same period last year, at 11%, and has also brought technology to improve business models (Digitization) that focuses on the adoption of various systems and platforms. used to reduce operational procedures And it also helps to increase work efficiency. which is starting to reflect the results back to the company more,” said Mr. Nattaphon. In addition, the company is still moving forward to find M&A partners to be a jigsaw for continued growth. Its targets range from Outsource, Software Enterprise and Professional Training companies, with a plan to become a fully digitally transformed company. Because it will reduce the cost of management. But operational efficiency and higher competition can be.
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