The SET-listed developer Pruksa Real Estate Plc (PS) predicts revenue and presales of 26 billion and 29 billion baht, respectively, this year after last year's flooding froze domestic housing demand.
The widespread floods battered the company's presales and revenue in the final two quarters of 2011. Presales had soared from 22.77 billion baht in 2009 to 38.75 billion baht in 2010.
Presales dropped to 25.31 billion baht last year, also below the company's target of 42 billion baht. PS revenue was essentially flat at 23.42 billion baht in 2011, compared with 23.4 billion in 2010.
The total number of launches this year will decrease to 34 projects worth 24.2 billion baht from an earlier plan of 49 projects worth 34.3 billion baht.
The other 15 projects will launch next year. PS also plans to spend 6 billion baht to buy new land plots in 2013.
Next year, 25-30% of new projects to be launched will be condominiums, up from 10-15% this year.
In general, the condominium segment takes as long as 18 months to realise revenue, against two or three months for single houses or townhomes.
Any condo developers that launched their projects this year will normally start construction next year, and most will be subject to a higher debt-to-equity ratio.
Prasert Taedullayasatit, PS's chief business officer, said the company aims to cap its D/E ratio at less than 1 after it rose to as high as 1.19 post-flooding. Right now the company reports a D/E ratio of 0.9.
In a move to expedite condo construction next year, the company has teamed with five contractors: Syntec Construction, RTH Construction, Westcon, Pornpranakhon and Saengfah Construction and Engineering.
"We can maintain our construction partners because we pay them in cash every month," Mr Prasert said.
PS expects revenue of 34 billion baht and presales of 35 billion baht in 2013.
The company has a sales backlog of 35 billion baht, of which 8 billion will be recorded in the fourth quarter and 15 billion in 2013.
Next year PS plans to launch 35 new projects worth 25-30 billion baht. It will also give more weight to the upcountry market, especially Chiang Mai, and launch more condominiums in Chon Buri and Phuket.
PS yesterday reported a nine-month net profit of 2.63 billion baht, up 6% year-on-year, on revenue of 18.77 billion baht, flat from the same period last year.
Presales in the nine months totalled 20.68 billion baht, down 18%.
Third-quarter net profit was 1 billion baht, up 31% from the same period last year. Revenue was 7.23 billion baht, up 11%.
PS shares closed yesterday on the SET at 19.50 baht, down 10 satang, in trade worth 45.14 million baht.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter