The top-ranked developer Pruksa Real Estate Plc (PS) plans an aggressive launch of 41 new projects worth a combined 28.7 billion baht by the first quarter of 2011 after doubling its annual budget for land acquisition to 14 billion baht to head off rivals.
Of the 41 projects, 29 worth about 22 billion baht will be launched this year. That will bring its launches to 68 this year worth 47.6 billion baht, 20 more than it projected earlier this year.
Somboon Wasinchutchawal, chief financial officer, said that so far the company had spent 10 billion baht to buy new plots due to its strong financial status and a potential business platform covering every market segment.
“Our only financial worry is debt-bearing interest, which may rise from 0.36 to 0.7 or 0.8 times by the end of the year if we ask for project loans for future development,” he said.
The company received approval from its board to issue bonds totalling 7.5 billion baht. If the economy is good and the rate satisfactory, it will issue bonds of 3-5 billion baht in November. Another 2.5 billion will be bills of exchange.
PS has also increased its sales target from 25 to 35 billion baht. Though it maintains target revenue of 24 billion baht in 2010, the final number could exceed the target by 10%.
Mr Somboon said the company could now realise revenue from low-rise units within 90 days, meaning sales in the third quarter can be realised in the fourth. Each month it has sales of 2 billion baht from the low-rise segment on average.
At the end of June, it had a sales backlog of 23 billion baht, highest in the industry. Of that amount, 10.52 billion will be realised in the second half. The company is likely to realise at least 6 billion in the fourth quarter from low-rise sales in the third quarter.
In July it had sales of 2.6 billion baht and another 500 million baht in the first week of August.
During the first half of the year, it posted 20 billion baht in presales, up 121% year-on-year. It posted a fifth consecutive new record for sales in the second quarter with 11.43 billion baht, up 128% year-on-year.
PS reported a first-half net profit of 2.07 billion baht, up 56% year-on-year from 1.32 billion baht, on revenue of 12.61 billion, or 53% of its annual target.
PS shares closed yesterday on the Stock Exchange of Thailand at 24.50 baht, unchanged, in trade worth 23.8 million baht.
Source : bangkokpost.com
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