Sino Thai sees higher 2008 net profit

Sino-Thai Engineering STEC.BK, Thailand's property third largest builder, said on Friday it expected a higher net profit this year as it increased prices and improved gross margins.

"Net profit should grow this year because gross margins will improve. We will raise prices on new projects along with higher costs," managing director Wallop Rungkitworasathien told reporters.

Rising steel and oil prices hit its earnings last year, when it made a net profit of 21.67 million baht ($690,300).

Wallop gave no specific profit forecast for 2008, but 11 analysts polled by Reuters Estimates expected the company to make a net profit of 334.8 million baht in 2008 on revenues of 15.03 billion baht, down 13 percent.

He agreed revenues would be lower this year in the absence of earnings from big projects Thailand Propery.

The firm aimed to add new projects worth 15 billion baht and had work on hand of 20 billion baht, he said.

Sino Thai would book a gain of 40 million baht in the first quarter from its subsidiary's sale of a hotel business, Wallop said.