TTW: When Drough Defeats Profit
TTW: When Drough Defeats Profit 
TTW: When Drough Defeats Profit
31 ส.ค. 2563

The drought this year not only caused CK Power Public Company Limited (CKP) to book a net loss for the first time in 3 years of 339 million baht in 1Q20, but also affected TTW Public Company Limited (TTW), the 2nd major shareholder by holding 24.98% of CKP stake.  
TTW is a private tap water producer and management service provided to Provincial Waterworks Authority (PWA) in the area of Samutsakhon-Nakhonpathom and Pathumthani-Rangsit areas. Although TTW’s profit has been increasing slowly and gradually due to the long-term Water Purchase and Sale Agreement with PWA, the company has a stability in profit.
In the matter of the operating results for the past 4 years, TTW has been reporting a continuous growth in profit. In 2016, the core profit was at 2,475 million baht, then booked a net profit of 2,663 million in 2017. Later, in 2018, TTW’s net profit was at 2,841 million baht and 3,127 million baht in 2019. 
While, the net profit margin stoon in a high levels…in 2016, net profit margin was 44.90%, 46.02% in 2017, 46.59 in 2018, and as high as 48.53% in 2019 
However, this year performance is likely to be disappointed after the net profit in 1Q20 dropped to 637 million or -13.6%YoY due to loss sharing from investment in CKP. Moreover, the 2Q20 operation is as well expected to continue to face a decrease in profit. Analyst estimated TTM to report a core profit of 692 million baht in 2Q (-5.2%YoY) as recognises a loss sharing from CKP.
TTW is expected to recover in 2H20 following an increase of residential water use and factories reopening. Meanwhile CKP will start to recognise a profit sharing in 2H as well but it would be worse than a year earlier. 
By the way, the most suffering from this crisis not someone else, but parent company like CH. Kaenchang Public Company Limited (CK)