SET-listed developer Siamese Asset will be cautious about new investments and focus on generating revenue from projects launched earlier, as well as reducing expenses during 2024-26 due to unfavourable financial market conditions.
Chief executive Kajonsit Singsansern said the company would not purchase new plots of land over the next three years, despite having only one plot, covering 15 rai, on Ram Intra Road opposite Fashion Island available for new developments.
"It is very difficult to raise funds or issue debentures these days as investors are more concerned," he said.
"Financial institutions are also stricter about lending for new project finance."
At present, almost all of the company's property development projects have secured project loans from financial institutions, except for one project, which was not difficult to secure.
Mr Kajonsit said the company had no new projects to be launched this year but would instead focus on selling and transferring existing projects on hand, as well as projects scheduled for completion within the year.
It aims to achieve 7 billion baht in revenue in 2024, setting a new record high, largely due to the completion of a significant condo project with a sales backlog of 4.8 billion baht, as of the end of 2023.
The main revenue will continue to come from residential development at 6.2 billion baht, comprising 4.1 billion baht from condos and 2-2.2 billion baht from low-rise houses.
The remainder will come from hotels, totalling 500-600 million baht, and other sources such as food and beverage, rental and services.
Mr Kajonsit said the company had no new projects to be launched this year but would instead focus on selling and transferring existing projects on hand, as well as projects scheduled for completion within the year.
Last year Siamese Asset recorded approximately 2 billion baht in revenue, down by 20% from 2.5 billion baht in 2022.
However, net profit rose by 24% to 193 million baht, and net profit margin to revenue increased to 9.7% from 6.2%.
He said the key driver of higher profit was the hotel business, thanks to the improving tourism industry.
The average occupancy reached 100% in the second half of last year, up from 80% earlier in the year.
The company expects to transfer residential property worth 1.02 billion baht in the first quarter of 2024, compared with the 1.12 billion baht it transferred throughout the whole of 2023.
"We expect to generate sales of our condo projects, particularly the one on Rama IX Road, among Chinese buyers during China's Golden Week," he said.
"Another promising nationality is Myanmar. Many of them are looking to buy properties in Thailand."
Next month, it will hold a sales event in Yangon and expects to sell 20-30 condo units to buyers.