VNG aims for further growth – Thunhoon

#VNG #Thun Hoon – VNG sets a total revenue target for the year 2023, growing by 10%, increasing orders. Currently, there are long orders until the 2nd quarter of 2023, as well as receiving the merit of reducing costs. Repeat plans to penetrate retail in the country Penetrate the contractors’ customer base – the public Keep an eye on currency fluctuations which could put pressure on profit potential.

Mr revealed Wantana Charoennawarat, Chairman of the Executive Board of Vanachai Group Public Company Limited or VNG, that the company is targeting total revenue for the year 2023, growing 10% of the total revenue for the year 2022, which is about 13 billion baht. , supported by the recognition Full year income from OSB sheet products after the company adjusted the product formula. (Specification) to suit the needs of each group of customers already, along with orders for the main products including plywood (Plywood), MDF (Medium Density Fiberboard), and particle board (Particleboard) continuously in the region the Middle East and Asia

* Continue to reduce costs.

The company has also benefited from implementing strategies to reduce operating costs, such as improving machinery to be able to use all types of raw materials, especially the use of small wood, resulting in a 40-50% reduction in wood costs, increasing the ability to produce finished products by ourselves, including solar roof projects with a total installed capacity of 12.7 MW, significantly saving electricity costs.

“The company manufactures products to order. Which receives an average of 2 months in advance, so at the moment, there are orders until the 2nd quarter of 2023 and continue to operate in accordance with the plan to reduce operating costs, especially electricity costs which are expected to save about 120 million baht per year and the cost of transportation after the company started doing some logistics on its own, so this year there is no plan to invest in any big projects. This is the year to realize the results of the investments made during the last year, especially MDF and particle board. which increased orders by around 10% YoY.”

*Expand the retail base

At the same time, it continues to focus on expanding its retail market base in the country. The aim is to make “Depot by Vanachai” (Depot by Vanachai) a center for manufacturers and specialists in building materials and home furnishings. Focus on targeting customers on the manufacturer (B2B-Business to Business) and consumer (B2C-Business to Consumer) side with a location in Chachoengsao. which is considered an important link in transporting goods to the eastern region North East and various regions conveniently It is also located in the Eastern Special Development Zone (EEC), which still has the potential to grow in the residential development industry for sale, office buildings, educational institutions. and industrial plants

“The company started aggressively re-entering the retail business after the COVID-19 situation subsided, so the direction of the market had to be closely assessed. Which intends to penetrate home building entrepreneurs, interior architects, and people who want to renovate-decorate houses, etc.”

Track currency movements

However, due to the fact that the company has a high income from exports 80% of the total annual income Therefore, the fluctuation of currency exchange rates must be closely monitored. Because it will significantly affect the profit potential of the company. However, the company is still focused on domestic sales. So he began to enter the retail market himself. In the long term, it still hopes to increase the share of domestic income.

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