According to recent announcement, Dcon Products Public Company Limited (DCON) is in the process of creating a joint venture with Prinsiri Public Company Limited (PRIN) to jointly develop a project where DCON invests 49% and PRIN 51%…interesting!
Well…, this partnership is somehow lead to win-win result for both sides.
DCON is a concrete, concrete pile, concrete fence, etc. manufacturer and distributor, which now struggling with an unclear of order as many property developers have begun producing their own construction material…resulting in growth in income will be limited.
In 2016, DCON had a total revenue of 1,034 million with a core profit of 138 million baht, later in 2017, the revenue slightly increased to 1,094 million baht with a profit of 223 million. In 2018, the earnings rose to 1,252 million baht, but net profit was down to 163 million baht and in 2019, the total income was at 1,189 million baht and profit slipped to 131 million baht.
DCON earlier had an ambition to penetrate in property development business through its subsidiary namely Orrada Company Limited as a property developer of Dzio Ratchaphruek, Baan Orrada Lamluka Klong 8, Dcon Prime Rattanathibet – Saima, etc…but it wasn’t that successful.
Therefore, joining hand with PRIN, which is more expertised at real estate development, shall offer the stronger real estate portfolio with several advantages for DCON. This partnership will begin its first cooperation by jointly developing the City Sense Project, Bang Na – Trat worth 958 million baht.
In addition, amid the economic slowdown, having a partner could help to reduce the amount of risk in their portfolio aligned with minimizing the total impact on their investment.
This deal is thus win-win for both sides…