บริษัท ไดนาสตี้เซรามิค จำกัด (มหาชน) - Dynasty TileTop

6
Message
from the President
During 2010, Thailand had many effects to the
economy, such as the politic unrest which halted the
economy in Bangkok. Many severe weather conditions
throughout the year namely the drought in second
quarter and the flood in third and fourth quarter. Not
to mention the continuous of Baht depreciation. These
effects mentioned above will also continue to affect the
economy in 2011. However, the company has managed
to maintain its growth with a good dividend payout.
2010 Performance
In the first quarter of 2010, the company had
21% growth in revenue from the previous year. Even
with the political crisis, the company had made a new
sales record in March at 722 million Baht. This proved
that political crisis does not affect the company’s
revenue. In the second quarter, with the drought,
the company had 16% growth in revenue from the
previous year. One of the biggest floods in Thailand
occurred during third and fourth quarter which had
halted the company’s growth where the third quarter
resulted in zero growth. In addition to the flood, the
fourth quarter is also the harvest season. From those
events, the company’s growth resulted in 11% from
the target of 15%. However, for the year 2010, the
company’s revenue was 6,513 million Baht with the net
profit of 1,175 million Baht or 18% increase from the
previous year. The gross margin also increased from
42.5% to 44.3% and the company was able to pay out
100% of the net profit or a total of 2.88 Baht per share.
Production investment and development
For the past three years, the company’s
revenue has been steadily growing without any
additional of new kilns. Because of the capacity
expansion can be done easily within three months,
the company’s objective is to expand the point of sale
before expand the capacity. The company’s policy is
to have kilns operating at the most efficient rate with
no idle capacity as we have seen that the capacity
utilization rate is always above 92%.
In the beginning of 2010, the company was
planning to modify and add 4 new kilns, but the
company only modifies and adds 3 kilns because
of the flood. The flood slowed down the market so
we extended the 4th kiln to 2011. In conclusion, our
capacity expansions plan as follows:
• January 2010 1 new kiln at Tile Top
Factory.
• March 2010 modified 1 kiln at Tile Top
Factory.
• July 2010 1 new kiln at Dynasty Factory.
• January 2011 1 new kiln at Tile Top
Factory.
• July 2011 1 new kiln at Tile Top Factory.
At the end of 2010, the company has
capacity of 51 million sqm, 58 million sqm in January
2011, then 61 million sqm in July 2011.
In addition to capacity expansion, the company
also researched on producing grout in 4Q10. The
capacity is now at 2,700 boxes per month or 10%
of the sales. In 2011, the company will be expanding
the capacity of grout. The new capacity should
cover at least 40% of the sales. The company also