Roof tile maker Diamond Building Products Plc (DRT) aims for sales growth of 5% this year after seeing signs of a market recovery and stronger consumer confidence since the fourth quarter of last year.
Chief executive Satid Sudbuntad said demand for construction materials has improved since late last year.
This momentum will continue this year, driven by economic growth, infrastructure development and private investment, which will enhance consumer confidence, Mr Satid said.
"After contracting over the past few years because of the economic slowdown, the construction materials market will pick up this year with the highest growth in three years," he said.
The roof market is valued at 10 billion baht per year, while the wall market's value totals 15-20 billion. DRT has a 20% market share in both segments.
DRT yesterday reported a 2017 net profit of 412 million baht on revenue of 4.18 billion, respectively rising 5% and 0.6% from 2016. The company is targeting revenue growth of 5% by year-end.
Of total revenue, 55% was from agents, down from 59% in 2016 on weak consumption dampened by the economic slowdown. This proportion will continue decreasing to 50% this year as other channels gain traction.
Other sales channels include property projects, for which the company's proportion rose from 11% in 2016 to 12% last year and is projected to further rise to 14% in 2018.
Sales from modern trade will be stable at 16%, while exports will grow to 20% from 17% last year.
"The expansion of Global House, one of our modern trade construction materials partners, which will open a new branch in Phnom Penh in May, will help boost our export sales," Mr Satid said.
Myanmar is another promising market that DRT is targeting over the next three years. The company set up a sales team in Yangon on the back of strong potential demand for construction materials.
In Thailand, DRT's three modern trade partners -- Thai Watsadu, Mega Home and Global House -- will expand to a combined 18 branches nationwide, up 16% from last year.
To boost sales from modern trade, which is becoming increasingly popular among consumers and individual contractors, DRT will hold a showcase to present its product offerings.
Mr Satid said the company this year will spend 270 million baht to improve production efficiency and add new production lines for concrete roofs.
The company currently has annual production capacity of 1.1 million tonnes.
Of that total, 1 million tonnes is produced by its factory in Saraburi and 50,000 tonnes each is manufactured in Chiang Mai and Khon Kaen.
DRT shares closed yesterday on the Stock Exchange of Thailand at six baht, up 15 satang, in trade worth 38.9 million baht.
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