SET-listed developer Sansiri is expecting to secure a record-high net profit in 2022, besting the 3.5 billion baht posted in 2015, resulting from its strategy to maximise cash flow during the pandemic.
President and chief executive Srettha Thavisin said the company used speed-to-market strategies, one of which was trying to sell as many units as possible to collect cash during 2020-21.
"Once Covid-19 broke out two years ago we knew our performance might suffer, but we accelerated the sale of ready-to-move units to gain more than 20 billion baht in cash," he said. "That strategy is bearing fruit today."
With a healthy amount cash on hand, Sansiri bought many land plots at lower prices during 2020-22 for development of residential projects starting in 2021.
In the first nine months of 2022, Sansiri recorded 2.48 billion baht in net profit, up 49% from the same period last year and exceeding the 2 billion it posted for the full year of 2021.
Total revenue was 22 billion baht, down 1%.
In the third quarter alone, net profit was 1.26 billion baht, double the growth from the same period last year, on revenue of 8.8 billion baht, up 23%.
The company expects the net profit in the fourth quarter of 2022 and for the full year to post a new record.
The current annual net profit record is 3.5 billion baht in 2015 on record revenue of 38.5 billion. The firm was established in 1984.
Transfers and presales in the third quarter were 9 billion baht and 15.3 billion baht, up 25% and 15%, respectively.
Transfers and presales for the first nine months this year were 22.6 billion baht and 28.6 billion, down 4% and up 42%, respectively.
Uthai Uthaisangsuk, chief operating officer, said the company expects to transfer residential units worth 9 billion baht in December, growth of 67% year-on-year. Roughly 5 billion baht would be from low-rise houses, with 4 billion from condos, said Mr Uthai.
He said the key driver is the luxury segment as Sansiri sold out Narasiri Krungthep Kreetha, with units priced 50-95 million baht, in one month, while Bugaan Yothinpattana, with units priced 40-80 million baht, in four months.
"The property market is recovering from resumption of foreign demand," said Mr Uthai. "Economic sentiment is in good shape after the reopening, which attracted a large number of foreign arrivals."
In 2023, the company plans to launch seven new projects in the luxury segment worth a combined 18 billion baht, he said.