Thursday, August 13, 2009

Thai land developer's corporate first-half financial results

Big developers report strong growth, high profit Land & Houses stands apart as the lone firm to post a falling performance

Most leading property firms have reported continued revenue and net-profit growth in the first half of the year.

They credit a significant recovery in demand for residential projects in the second quarter, especially in May.

The listed property firms reported their second-quarter and first-half financial results to the Stock Exchange of Thailand this week, with most of the top 10 recording strong growth.

The sole exception is Land & Houses, which reported declines in both revenue and net profit in the first half of 7.7 per cent and 3 per cent, respectively.

However, senior executive vice president Adisorn Thananun-narapool said those figures surpassed original estimates of 3-per-cent and 13.9-per-cent declines, respectively.

Preuksa Real Estate recorded first-half revenue of Bt7.44 billion for a net profit of Bt1.32 billion, up 34.9 per cent and 41 per cent, respectively, year on year.

In the second quarter alone, Preuksa recorded revenue of Bt3.66 billion for a net profit of Bt639.4 million, up 11 per cent and 24 per cent, respectively, year on year.

Asian Property Development recorded first-half revenue of Bt5.24 billion for a net profit of Bt831.22 million, up 34.35 per cent and 28.35 per cent, respectively, year on year.

LPN Development reported first-half revenue of Bt4.3 billion for a net profit of Bt769.8 million, up 19.4 per cent and 26.38 per cent, respectively, year on year.

Supalai reported revenue of Bt4.66 billion for a net profit of Bt1.24 billion, up 42.94 per cent and 87.87 per cent, respectively, year on year. In the second quarter alone, it recorded revenue of Bt2.56 billion for a net profit of Bt697.41 million, up 15.8 per cent and 45.1 per cent, respectively, year on year. (For other firms, see graphic.)

Preuksa Real Estate director and chief operating officer Prasert Taedullayasatit said demand for residential projects recovered significantly in the second quarter. In May alone, there were 28,814 new residences registered in the greater Bangkok area, up 5.16 per cent from 27,400 units registered in May 2008.

He said the number of visitors to Preuksa's present portfolio of 84 residential projects was averaging about 5,000 per week, or 66.67-per-cent more than the first-half average of 3,000.

"We believe the overall property market this year will be 5-10-per-cent higher than last year. There was better sentiment in the second quarter than in the first," he said.

Asian Property Development (APD) CEO Anuphong Assavabhokhin said his company's net sales bookings in the second quarter amounted to Bt3.7 billion and were spread 50:50 between condominiums on the one hand and low-rise single-detached houses and townhouses on the other.

The strong recovery in demand late in the second quarter led to APD's highest-ever quarterly sales bookings for single detached houses and townhouses, amounting to Bt1.8 billion.

With a sales backlog standing at Bt14.3 billion at the beginning of this week and first-half revenue of Bt5.2 billion, the company is confident of achieving this year's revenue target of Bt10 billion.

Due to stronger-than-expected revenues, APD has increased this year's land-acquisition budget 50 per cent to Bt3 billion.

"We're expanding our investment because we believe the property market will recover in the second half," he said.

LPN Development managing director Opas Sripayak said his company saw strong demand for residential projects priced between Bt1 million and Bt2 million a unit in the second quarter.

After recording first-half revenue of Bt4.3 billion, the company is confident of achieving its full-year revenue target of Bt8 billion - or even more.

Meanwhile, LPN will transfer two condominium projects worth Bt4 billion to customers in the second half: Lumpini View Ramkhamhaeng 26 and Lumpini View Rama VIII.

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