SET-listed digital solutions provider Turnkey Communication Services (TKC) has set a profit growth target this year of at least 10%, attributed to government spending on various telecom and information and communications technology projects.

The company expects its cybersecurity services to contribute more than 10% of total revenue in 2025, up from 5%, in line with rising demand in a rapidly evolving digital landscape.

Sayam Tiewtranon, chief executive and managing director of TKC, said the annual revenue contribution from cybersecurity services would grow by double digits for at least five years.

Mr Sayam said despite the economic slowdown, the technology market has improved in recent years because of digital infrastructure investment as well as digital solution adoption by the public and private sectors, aiming to improve efficiency of operations and management.

TKC provides smart services in eight sectors: hospitals, buildings, farming, logistics, autonomous, cybersecurity, learning and platforms.

In the fourth quarter this year, TKC reported large investment projects by customers, mainly in the telecom sector, which is the company's core business.

For new businesses such as smart hospitals, smart farming and smart logistics solutions, the company expects to clinch big projects that include cloud.

These projects are expected to begin development in the fourth quarter this year and into next year, providing the company with new business opportunities, he said.

Mr Sayam said TKC has a backlog of roughly 2.3 billion baht, 30% of which it expects to recognise as revenue this year.

The company set its capability to bid for projects at 10 billion baht annually, with a target to clinch new projects worth at least 4-5 billion baht per year to add to its backlog portfolio.

According to its report to the Stock Exchange of Thailand, in the third quarter TKC posted a net profit of 51.5 million baht, a decrease of 30.2% year-on-year from 73.8 million.

Total income for the period was 458 million baht, a decrease of 51.5% year-on-year from 944 million.

He said the declines in revenue and profit were attributed to the company's recognition of revenue from large projects that it delivered last year.

The company plans to create new growth, especially in areas related to Internet of Things technology, along with the creation and design of networks and servers to enhance efficiency, reduce costs and control quality in various businesses, said Mr Sayam.

TKC plans to increase the proportion of recurring income by an average of at least 7-10% per year, from the current proportion of recurring income of roughly 35% of total revenue, he said.

Currently 30% of the company's income is from customers in the private sector, with 70% from the government sector. TKC plans to adjust the proportion to 40:60 in a few years.

Mr Sayam said cybersecurity has the highest growth potential in Thailand and Southeast Asia as organisations face cyberthreats, but their response and training of personnel in this area remain at a low level.

In July 2023, TKC signed an exclusive memorandum of understanding with EC-Council, a global leader in cybersecurity education and certification, to establish a joint venture company to provide security operation centre services and comprehensive training programmes for enterprises in Thailand.

Thank you : Bangkok Post