TOG expects lower growth

       SET-listed Thai Optical Group, a distributor and exporter of optical lenses,expects its revenue and profit growth to halve to about 7-8% this year due to the global slowdown and political turmoil earlier this year.
       The April riots in Bangkok and Pattaya lost the company orders, chairman Sawang Pracharktam told investors at a briefing yesterday.
       TOG exports about 95% of its products,mostly to Western Europe, the United States and Asia. The company reported second-quarter sales revenue of 327.23 million baht, down 10.96% from the same period last year. Second-quarter profit also declined 10% year-on-year to 35.09 million baht.
       For the first half, the company posted revenue of 687 million baht, up 1.81%year-on-year, with net profit up 14.67%to 74.5 million.
       Improved sales of high-value products and cost controls on sales and administration expenses helped increase the company's margins, said Mr Sawang.
       "Generally, we look to post revenue and profit growth of 10% to 15% per year. Optical products are generic products that everyone must use," he said.
       "With the global economy recovering,we hope that growth will return to normal next year."
       The company will increase promotional activities for its Excelite brand in the local market, said Mr Sawang. TOG currently claims a 30% share of the local lens market.
       The company expects to step up production from 80% currently to full capacity by the year-end, said managing director Sarote Pracharktam. TOG produces 180-200 million units per year.
       The company is investing 70 million baht in a new office building this year and will invest 20 million in plant expansion in 2010. TOG expects to complete a lab in Vietnam this year and to open offices in Malaysia and Singapore in 2010, Russia in 2011 and China in 2012.
       Thailand is one of the largest producers of optical lenses, with a 22% share of global production, according to PPG Industries.
       TOG shares closed yesterday on the Stock Exchange of Thailand at 3.38 baht,up 10 satang, in trade worth 10.912 million baht.