Loxley - OSK

RHB Research 06 Mar 2013
COMPANY BACKGROUND
Brief history. Loxley began as a trading company in 1939 under the name Loxley Rice Company
(Bangkok), as a JV between Ng Yok Long Lamsam and WR Loxley of Hong Kong. The original
activities were the export of rice and lumber. By 1957, its main business shifted to selling imported
industrial products, including those with advanced technology of the day. On 1 April 1993, it went
public under the name of Loxley Public Company Limited, and was subsequently listed on the Stock
Exchange of Thailand on 25 Jan 1994. Today with dozens of subsidiary and associated investments,
its business activities can be divided into four main business groups namely: i) ICT and projects, ii)
trading, iii) services, and iv) joint ventures and associate investments. Loxley’s ICT and project
business can be broken down into three subdivisions: i) ICT and telecommunications, ii) projects,
and iii) technology.
An integrated ICT contractor. Despite having diversified exposure in several core segments, we
think Loxley can be more appropriately classified as an integrated ICT & telecom-related contractor,
where around 70% of its revenue is from the ICT business segment. With a growing ICT backlog,
its exposure to the ICT sector is set to increase further to the point where the segment will
continue to be the key driver for the company’s future growth.
Figure 1: Loxley’s business and organizational structure
Source: Bloomberg
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