Christiani and Nielsen (Thai) Public Company Limited (the “Company”), founded in 1930 is a construction company with a history of over 90 years.. The Company’s registered share capital as at 31 December 2023 is THB 1,102,904,144 with a paid up capital of THB 1,027,904,144. Throughout the years, the Company has been a part of national development, with many construction projects all across Thailand.
| 2023 | 2022 | 2021 | 2020 |
|---|
| Revenues | 7,249.15 | 5,348.36 | 6,198.67 | 7,539.56 |
| Expenses | 7,202.79 | 5,613.48 | 6,299.19 | 7,441.13 |
| Net Profit (Loss) | 29.04 | -213.39 | -128.92 | 75.47 |
| Assets | 6,486.52 | 6,202.19 | 5,551.45 | 6,360.86 |
| Liabilities | 4,809.77 | 4,552.77 | 3,625.68 | 4,257.92 |
| Shareholders' Equity | 1,676.75 | 1,649.42 | 1,925.77 | 2,102.94 |
| Operating | -765.33 | -156.51 | 286.95 | 634.59 |
| Investing | -251.96 | -123.46 | -132.48 | 13.88 |
| Financing | 975.84 | 188.29 | -91.00 | -591.74 |
| EPS (Baht) | 0.03 | -0.21 | -0.13 | 0.07 |
| GP Margin (%) | 4.03 | -0.61 | 2.86 | 4.96 |
| NP Margin (%) | 0.27 | -4.09 | -2.10 | 1.01 |
| D/E Ratio (x) | 2.87 | 2.76 | 1.88 | 2.02 |
| ROE (%) | 1.76 | -12.06 | -6.47 | 3.64 |
| ROA (%) | 1.50 | -3.85 | -1.56 | 1.61 |
The business operations are managed so as to add value in the long term by creating a strong foundation with the goal of sustainable business and maximizing benefits for all stakeholders.
Throughout the business operations, the company adheres to and fulfills the commitments made to all stakeholders, both internally and externally, with integrity and honesty. The company conducts business practices in strict compliance with laws, regulations, and relevant rules. The company adheres to good corporate governance principles, manages risks, and has an effective internal control system, including efficient financial management.
Registered share capital THB 1,102,904,144.
Construction Company with a history of over 90 years.
The first construction company listed on the Stock Exchange of Thailand.
Providing a wide range of services including design and construction of building and civil engineering projects for both government and private sector.
For Y2023, the consolidated financial statements of the Company show net profit of 19.8 MB, a 238.3 MB increase compared to the net loss of 218.6 MB in Y2022. The total revenue was 7,249.2 MB, an increase of 1,900.8 MB or 35.5% from 5,348.4 MB from Y2022, due primarily to a 1,917 MB increase in construction income or 36.8% of 5,214 MB from Y2022. Cost of Construction, rental, and sales and services accounted for 6,918 MB, an increase of 1,555.1 MB or 29% compared to Y2022. The gross margin increased by 323.3 MB with increase in % of gross margin from loss in 2022 of 0.61% to profit of 4.03%, because in Y2023, there was an increase in construction income. Moreover, the Company improved in managing construction projects cost and there was less adverse effect from material price escalation compared to Y2022.
Expanded into the renewable energy business through investment in the development of Solar Power Plants.
Expanded into the special luxury high end hotels and resorts sector of the construction industry which has maximum potential through the establishment of another subsidiary company with a Team of people with expert knowledge and skills in this sector.
Operating Risk
The Company is exposed to different levels of operating risks such as accidents, mechanical failure, human error, political action, adverse weather conditions and other circumstances and events. These could result in increased costs or loss of revenues. To reduce the likelihood of these risks occurring, the Company ensures that Contractors’ All Risks insurance are available for each of the projects which the Company executes.
Construction time and cost
The Company remains exposed to escalation in construction costs and fluctuation in prices of materials. Therefore, in order to remain competitive, the Company has to manage the overall purchasing volume by ordering big lots to help in bargaining and sign material contracts as early as possible. In order to mitigate the time risks, including fluctuation of material prices over time, the Company favors projects which have manageable construction periods, or projects that are split into multiple phases. This allows the Company to adjust the pricing in case of higher material costs in the later phases. This includes prior agreement with the owner before entering into a contract to include a condition allowing the Company to claim Extension of Time and to adjust the price if the price of main materials such as concrete and steel rises increase beyond certain limits.
Financial Risk
The Company needs significant working capital to operate its business and if there are delays in receiving milestone and variation order payments, this can lead to financial stress for the Company. In certain cases, the Company is required to also grant to its Customers long credit periods which means that a considerable amount of funds remain stuck in receivables.
To mitigate these risk factors, the Company has arranged working capital credit lines with a number of Banks and follows a policy of negotiating payment terms that are strict and appropriate with the condition of receiving advance payments from the Customers.
| as of 28/12/23 | CNT | CONS | SET |
|---|---|---|---|
| P/E (X) | - | 267.75 | 18.42 |
| P/BV (X) | 0.65 | 0.92 | 1.36 |
| Dividend yield (%) | - | 1.83 | 3.32 |
| 28/12/23 | 30/12/22 | 30/12/21 | |
|---|---|---|---|
| Market Cap (MB) | 1,048.46 | 1,397.95 | 2,014.69 |
| Price (B/Share) | 1.02 | 1.36 | 1.96 |
| P/E (X) | - | - | - |
| P/BV (X) | 0.65 | 0.75 | 1.01 |
