Ital-Thai drops its revenue forecast

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Ital-Thai drops its revenue forecast
Somluck Srimalee
The Nation



Property and hotel businesses hit by political turbulence

BANGKOK: -- Ital-Thai Group has cut its revenue forecast this year from Bt13 billion to Bt12 billion after property and hospitality businesses showed signs of faltering due to the country's marathon political conflicts.

CEO Yuthachai Charanachitta said in an interview with The Nation last week that the forecast is maintained at nearly last year's level with Bt4 billion from trading, Bt4 billion from the engineering system service and Bt4 billion from hospitality and property.

But with political turmoil erupting late last year and dragging on till now, tourists have kept away from Bangkok and the provinces, and this has hurt its hotel business.

Occupancy at the group's hotels in Bangkok was only 50 per cent last quarter, while its hotels upcountry reached about 80 per cent.

Ital-Thai's "Amari" hotels are managed by its subsidiary Onyx Hospitality Group.

If the political conflict is prolonged, hotels will continue to face tight room sales till the end of this year.

The company has retained its staff but reduced working hours to save operating costs while business is down.

Demand for luxury homes in Phuket has also dropped, so residential sales on the resort island are about 30 per cent short of target. This has hit its property business this year.

The group has lowered its sights for property revenue by 20 per cent from Bt1.2 billion last year to Bt1 billion this year.

Amari Estate Co is the property arm of Ital-Thai and the developer of residential projects in Phuket and Hua Hin with a focus on luxury residences priced over Bt9 million a unit.

Following the hazier business outlook, the group has to delay investment till next year, especially in property projects, he said.


-- The Nation 2014-05-05

[NongKhaiKid]

" Showed signs of faltering " ? What an understatement.

[chooka]

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

[Thai at Heart]

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

These days its a Thai run company.

[chooka]

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

These days its a Thai run company.

http://investors.morningstar.com/ownership/shareholders-major.html?t=ITHVF

[Thai at Heart]

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

These days its a Thai run company.

http://investors.morningstar.com/ownership/shareholders-major.html?t=ITHVF

Yes, and....?

Foreigners are invested in it. As far as I know, there aren't some group of foreigners representing the foreign shareholder in the management.

It is a Thai company with few if any foreign managers. That is just the construction arm you quote there and the holdings are less than 1%.

Edited May 5, 2014 by Thai at Heart

[chooka]

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

These days its a Thai run company.

http://investors.morningstar.com/ownership/shareholders-major.html?t=ITHVF

Yes, and....?

Foreigners are invested in it. As far as I know, there aren't some group of foreigners representing the foreign shareholder in the management.

It is a Thai company with few if any foreign managers.

Can't dispute and agree with you.

[ChrisY1]

They must have some very good connections within the government.....everywhere you go in BKK, most major projects are IT .....(Sino-Thai is also another, some connection with IT???)......would be interesting to see the up front payment values.....

[Thai at Heart]

They must have some very good connections within the government.....everywhere you go in BKK, most major projects are IT .....(Sino-Thai is also another, some connection with IT???)......would be interesting to see the up front payment values.....

It's more interesting to note that getting paid by them is akin to getting blood from a stone.

Very very long payment terms as standard.

[noitom]

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Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

This is primarily a family owned and controlled business even though it is a public company. The family appears on the Forbes 37th richest in Thailand. They also own the Mandarin Oriental. Like most Thai companies, if you look at their web site it is difficult to find useful information. It is hard to understand how reputable investment companies such as Vanguard would have substantial investment in opaque non-transparent Thai companies.

[rickirs]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Sounds like a joint Italian-Thai operation but I was very surprised to see that the biggest shareholder is British (Polunin Capital Partners) followed by Vanguard Group, Inc. from the U.S. SCB seems to be the largest Thai stake holder but miniscule compared to the other two.

These days its a Thai run company.

http://investors.morningstar.com/ownership/shareholders-major.html?t=ITHVF

Good link.

ITHVF has 22 million shares outstanding and 100% owned by six financial institutions / investment funds as cited with SCB owning only about 12%.