The Bangkok Thonglor

Thai Developers Confident On Revenue Growth

LISTED property developers Supalai Plc and Ananda Development plc have announced solid revenue expansion for last year, while SC Asset Corporation posted a decline in revenue growth.

However, all three companies have expressed confidence that they will close out this year with double-digit revenue growth.

Supalai reported total revenue of Bt25.78 billion and net profit of Bt5.8 billion for 2017, up 10 per cent and 19 per cent, respectively, from 2016.

IDEO Mobi Asoke
IDEO Mobi Asoke by Ananda

Ananda Development pulled in Bt12.9 billion in revenue for the year, a gain of 6 per cent from the prior year. But net profit dropped 12 per cent from 2016 to Bt1.3 billion.

Supalai managing director Tritecha Tangmatithum said that the company still managed strong growth in total revenue and net profit last year, from 2016, thanks to healthy market demand, in particular, for single detached houses and townhouses. Condominium transfers to customers accounted for about 47 per cent of the company’s total revenue last year.

The company expects its total revenue and net profit for this year grow at a double-digit pace when the company launches 35 residential projects worth Bt40 billion in 2018. It is targeting presales of Bt33 billion for the year.

Ananda Development chief executive officer Chanond Ruangkritya said that the company also expected its total revenue and net profit to maintain strong growth in 2018.

The company believes total residential transfers will increase by 152 per cent to Bt38 billion, with contributions from nine condominiums that are nearing completion in readiness for transfer to buyers, Chanond said.

The Bangkok Thonglor
The Bangkok Thonglor

SC Asset Corporation chief executive officer Nuttaphong Kunakornwong said the company achieved Bt12.45 billion in operating income, with Bt850 million from rental fees and services and Bt11.6 billion from its core business of property development for sales. The sales revenues were divided into Bt9.09 billion from sales of horizontal projects, up 18 per cent year on year, and Bt2.5 billion from vertical projects, down 58 per cent from the previous year.

Nuttaphong attributed the slump to the fact that the construction of large condominium projects is about to finish and are only ready for transfer in 2018, resulting in lower 2017 income from these operations versus the figures in 2016.

In 2018, SC targets sales income and revenue of Bt17 billion, up 11 per cent. This year, 19 projects will be launched with a combined investment of Bt19 billion.

In addition, SC’s board of directors agreed at a meeting on February 21 to establish a subsidiary named SC Alpha Inc, with registered capital of US$1 million, to invest in property projects in the United States. The board also agreed for the company to pay an annual dividend for 2017 at Bt0.12 per share and forward the proposed dividend payment for approval at the general shareholders’ meeting on April 23, Nuttaphong said.


Courtesy: The Nation Thailand

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