SET-listed L.P.N. Development Plc plans to launch 14 new projects in the middle- to upper-end segment worth a combined 18 billion baht in 2018, aiming to have 20 billion baht in presales and 12 billion in revenue by year-end.
Chief executive Opas Sripayak said the company this year will continue its focus on the middle- to upper-end segment because purchasing power is strong and buyers are less prone to mortgage rejections by banks.
"During the past few years, we had focused on the middle- to lower-priced segment, which led us to a trap as buyers in the segment had difficulties getting mortgage loans approved," Mr Opas said.
L.P.N. had high rejection rates in the past several years, causing an increase in condo inventory from returned units whose buyers were rejected.
The highest amount of unsold, completed condos was 13,000 units worth 14 billion baht L.P.N. carried last year. With strong campaigns and discounts, it sold half the amount.
In 2017, L.P.N. recorded 16 billion baht in presales, up from 8.7 billion in 2016. Some 7 billion baht was from condo inventory ready to transfer, accounting for 50% of the total.
L.P.N. posted a net profit of 1 billion baht in 2017, down from 2.1 billion in 2016, on revenue of 9.65 billion baht, a dip from 14.65 billion.
The company expects 12 billion baht in revenue in 2018, with 10.5 billion baht from condominiums and 1.5 billion baht from single houses and townhouses.
At the end of 2017, L.P.N. had a sales backlog of 7.4 billion baht. Some 5.9 billion baht will be realised in 2018.
Mr Opas said three of the new single-house and townhouse projects will be in the high-priced segment under the 365 brand, with former chief executive Tikhamporn Plengsrisuk as project manager.
Project size will be from 20 rai, with the first location on Rama III Road. Unit prices will start at 17-20 million baht for a townhouse and from 50 million baht for a single detached house.
Presales targets are 17 billion baht from condominiums and 3 billion baht from single houses and townhouses.
Some 7 billion baht of the condo presales target will be completed units ready to transfer, with 10 billion baht from newly launched projects.
Pornsanti Co, a subsidiary that develops single houses and townhouses, will launch one project worth 850 million baht and aims to have 2 billion baht in presales and 1.5 billion in revenue.
Last year, Pornsanti launched five projects worth a combined 2.45 billion baht and recorded 1.75 billion baht in presales and 1 billion in revenue, up 27% and 18%.
LPN shares closed yesterday on the SET at 10.40 baht, down 20 satang, in trade worth 160.5 million baht.