The general view of a Mega Home store. (Photo courtesy of Mega Home)

Mega Home Center Co, a subsidiary of SET-listed Home Product Center Plc, plans to invest up to 1 billion baht to launch two new stores in the Northeast to serve rising demand for construction materials, says chief operating officer Supornsri Naktanasukanjn.

"One new store will be located in Nakhon Ratchasima and another somewhere next to the province," she said. The company's goal is to open 11 new Mega Home stores in Thailand this year.

Mega Home's five-year plan (2014-19) entails investing up to 10 billion baht to open up to 20 stores. There are nine current branches in Mae Sot, Nong Khai, Chon Buri, Sa Kaeo and Rangsit.

Recently Mega Home opened a new store in Hat Yai in Songkhla province, the company's first in the South. The outlet received a warm welcome from customers, as demand for construction materials in the area has risen because of the government's policy to invest in infrastructure as well as its policy to lend soft housing loans for villagers to stimulate the economy, said Ms Supornsri.

"The company expects total revenue to exceed our target of 6.4 billion baht this year thanks to government investment projects that have helped stimulate demand," she said.

Most customers of Mega Home are small and medium-sized enterprises (SMEs) and local companies.

"Demand for construction materials from SMEs and local companies continues to grow, while people also want to renovate their residences," Ms Supornsri said. "Those are positive factors that help support the company."

But sales in the third quarter will be down slightly because of seasonal rain, she said.

The Construction Institute of Thailand, a subsidiary of the Industry Ministry, reported that total investment value in the construction sector for the first quarter this year was 315 billion baht, up 8.3% from the same period last year.

The investment value for the construction sector for the full year is projected at 1.16 trillion baht.