SKY ICT, an information and communication technology system provider, is expected to expand its business in the service sector by implementing its know-how in ICT through the investment in SAMCO.
Yesterday, SKY announced an acquisition in Siam Administrative Management and Security Guards Company Limited (SAMCO) at an investment value of Baht 500 million, through its wholly-owned subsidiary Metthier Company Limited (Metthier).
SAMCO is a services business that provides four types of services, namely (1) building and cleaning management services, (2) security services, (3) security system management services, and (4) cash management and security transportation services. The company has more than 400 corporates under its customer’s list, including the Siam Commercial Bank, Central Plaza, Siam Cement Group and Stock Exchange of Thailand etc.
Mr. Sithidej Mayalarp, Chief Executive Officer of SKY ICT Public Company Limited (SET: SKY), through “Kaohoon Jor Talad Program,” stated that the company is expecting to synergize SKY’s profession to elevate SAMCO’s operations, including facial recognition, artificial intelligence and censor.
SKY is expected to provide SAMCO’s customers with smart security service, which is easier to access. The company expects this synergy will unlock an upside to its operation while creating long-term growth for SKY.
The CEO expected to see Baht 400-500 million of revenue generated by this acquisition in the second half of the year. More importantly, by implementing smart technology into SAMCO’s service business, Mr. Sithidej noted that it could accelerate profit margin from 3-5% to 10-15% as the costs of human resource to manage the business could be replaced by the technology, while employees with potential could be trained in other fields. However, these types of technology are still new to the service sector and SKY is expecting to use the second half of this year to implement these technologies into the market. The company expects to see significant change in the sector by next year.
SKY recorded Baht 820 million of revenue in the first quarter of this year, representing an increase by 75% YoY. The company booked Baht 83 million of net profit for the quarter as the tourism sector is starting to recover. SKY had Baht 22,900 million of backlog at the end of 1Q23.