Ananda Development Plc (ANAN), a SET-listed property developer, plans to double its revenue this year to 11 to 12.5 billion baht, returning the company to profit.
Locations near the BTS are key, says Mr Chanond. PATIPAT JANTHONG
To achieve the revenue target, Ananda plans to recognise revenue contributions from four projects worth a combined 6.7 billion under the Ideo Mobi condominium brand, seven residential projects surrounding Suvarnabhumi Airport worth 2.5 billion under the Atoll brand, and the Ad2 project worth 2.8 billion.
Executive chairman Chanond Ruangkritya said the company just unveiled a condominium under the new Elio brand near the Punnawithi skytrain station worth 4.8 billion baht. The average price is 1.29 million baht per unit and over 50% of the units have been booked.
A high-end condo that is ready-to-move will launch next week _ the Ashton-Morph 38 _ on Sukhumvit Soi 38. Ananda expects it will generate revenue this year.
Sermsak Khwanpuang, the chief investment officer, expected the company to wipe out retained losses of 624 million baht and return to the black this year.
The company plans to grow 25% with total revenue of 13.5 billion baht in 2014 and 17 billion in 2015.
"We aim to keep our gross profit margin higher than 35%. Acquiring new land plots in prime locations near the BTS is the key to our success," said Mr Chanond.
Ananda set a 2013 investment budget of 1.2 billion baht, with 5 another billion for land acquisitions and 7 billion for construction.
The company's earnings picked up in the fourth quarter of 2012 with total revenue of 1.34 million baht, a 109% year-on-year increase, and net profit of 27 million, a 124% gain.
Last year the company reported a net loss of 287 million baht, following a net loss of 317 million in 2011.
The company's shares closed yesterday on the Stock Exchange of Thailand at 4.68 baht, up eight satang, in trade worth 146 million baht.
About the author
- Writer: Darana Chudasri
Position: Business Reporter