Diamond Roofing scores 56% profit rise

Diamond Roofing Tiles plans to boost its revenues 10 per cent this year, after yesterday announcing a 56-per-cent rise in its net profit for last year and a dividend payment of 60 satang per share for second-half operations.

Managing director Asanee Chantong said 2006 net profit was recorded at Bt314 million, or Bt1.57 per share. He described the earnings results as satisfactory, although the company was affected by rising oil prices and interest rates. There were also impacts from natural disasters and political uncertainty.

Diamond Roofing Tiles shares closed at Bt9.05 yesterday, an increase of 0.56 per cent.

Asanee said his company would pay a dividend of Bt0.60 per share for the second half of 2006 to shareholders whose names appear in the registration book on March 12.

"The company already paid a dividend of 50 satang for operations in the first half of last year. The total dividend for last year is Bt1.10 per share. This turns into a dividend yield of as much as 70 per cent, which is quite high," he said.

Asanee said his company planned this year to improve its production process to reduce costs and boost competitiveness.

Satid Sudbuntad, vice president for sale and marketing, said the company would promote its Diamond and Adamas concrete roofing tiles.

It has set aside Bt130 million for advertising this year.

Aside from sales via 600 distribution agents, Satid said Diamond Roofing Tiles would try to maintain its gross profit margin at last year's 30 per cent. The products with high gross margin are coloured roofing tiles and siding boards.

The company expects this year's revenues to increase 10 per cent from last year's Bt2.39

billion through 90-per-cent domestic sales and 10-per-cent exports.

In addition, the company will increase its product line by adding siding boards with an investment value of Bt200 million.

The current main products of the company are fibre-cement and concrete tiles, siding boards, and diamond polishing machines.

He added that the slowdown had not much affected Diamond Roofing Tiles' strong customer base.

The company will also negotiate to sell its products in Dubai for the 48 buildings of the Dubai Laguna Project. Negotiations are expected to be concluded next quarter.

Source: The Nation by Siriporn Chanjindamanee
Wednesday, February 28, 2007