LOXLEY Public Company Limited

    • “Loxley” Shows Strengths To Drive 2015 Growth

       Mr. Dhongchai Lamsam, the president of Loxley Public Company Limited, discloses the 1H2015’s operating performance. Although the sluggish economy and the slowdown of government projects have an impact on the operating performance, he believes the overall performance of 2015 is still bright. The second half of 2015’s operating performance from all 4 businesses will drive both overall revenue and net profit. These include Technology, Trading, Service, and Joint Venture businesses. 


      For Technology business, Loxley Group won the new projects for the total value of approximately 5 billion Baht during the first 6 months of 2015 despite the slowdown of government projects. The diversification of customers in different bureaucratic departments helps lessen the risk in not being awarded a project from only one customer.  Apart from that, the recurring revenue generated from maintenance and expansion from the existing projects also strengthens Technology business’ position in terms of revenue sustainability. The second half performance will be supported by current backlog of approximately 9 billion Baht, the government infrastructure project, the expansion of 4G, Digital TV phase 2 and the extension of telecommunication networks in AEC.

      For Trading business, the revenue comes from the sales of consumer products, chemical products, and construction materials. Despite a slow domestic consumption in the first half of 2015, Loxley can sustain the revenue from this business relatively well. The strength stems from the network of more than 30,000 shops and 500 factories nationwide. The 2015 second half’s performance will be driven by the order backlog from construction materials sales of approximately 800 million Baht, the penetration into the new market, namely HoReCa, and the expansion in overseas network of more than 2,000 outlets. 

      For Service business, Loxley’s competitive advantage relies on the ability to comply with the new legislation where the general guards at the airport must be trained under an institution approved by the Department of Civil Aviation (DCA). The training centers approved by DCA are still limited in Thailand but Asia Security Management Co., Ltd. (ASM), Loxley’s subsidiary, has established such a center for several years. Currently, ASM has a strong foothold not only in an aviation industry but also a non-aviation industry.

      For Joint Venture business, the 2 major associates, including NS BlueScope Group and BP Castrol (Thailand), shows satisfactory performances in the first half of 2015 both in terms of revenue and net profit generation. It is believed that the second half of 2015 is still bright for both associates especially for NS BlueScope Group who will expand to a home appliance market. 

      Last but not least, Loxley has a very strong financial position with a debt to equity ratio of only 1.08 times and an interest bearing debt to total equity of only 0.5 times. Additionally, Loxley has already refinanced the long-term loan with a cheaper financial cost. Moreover, with the resolution to issue bonds, if any, from the shareholders in the previous annual general meeting, Loxley has entered into a credit rating process and is rated at BBB+, an investment grade, from TRIS Rating. This means that Loxley is prompted to increase its capitalization in terms of loans and bonds. The strengths from 4 businesses with the room to increase more leverage will support the growth of Loxley in 2015 and in the next couple of years.