SET-listed property firm Pruksa Holding Plc (PSH) says its operating results improved in the first quarter, due to falling household debt.
Deputy group chief executive Supattra Paopiamsap said Wednesday that the company's first-quarter revenue and net profit both improved from 8.07 billion baht and 680 million, respectively, in the same quarter last year. However, Mrs Supattra declined to give exact figures.
The reason for the uptick was a drop in household debt, which helped many homebuyers receive mortgage loan approvals, she said. The lower household debt was attributed to the end of the first-time car buyer scheme and lower credit card debt, Mrs Supattra said.
Last year, household debt dropped to 77.5% of GDP from 80% in 2016 and 81.6% in 2015. This trend should continue this year, Mrs Supattra said.
She said the company's presales in the first quarter dropped to 13 billion baht from 13.3 billion in the same period last year as the company launched fewer condo projects.
In the first quarter, Pruksa launched 15 new residential projects worth a combined 9.8 billion baht. Fourteen sites comprised single detached houses, townhouses and duplex houses in Greater Bangkok, Phuket and Rayong.
Mrs Supattra said new residential launches in Greater Bangkok totalled 25,000 units, worth a combined 108 billion baht, down 1% and up 15%, respectively, as most new launches were in the upper-end segment.
The amount of outstanding housing supply in Greater Bangkok rose by 4% to 211,000 units worth a combined 871 billion baht, up 11%, in the first quarter.
As of the end of March, Pruksa had a total sales backlog of 31 billion baht, up 15% from the fourth quarter of last year. Of this amount, 15 billion baht will be booked this year.
Pruksa Wednesday launched a rebranding campaign with rock star Athiwara Khongmalai, aka Toon from the group Bodyslam, who solicited donations to upgrade 21 hospitals nationwide through his charity marathon across Thailand.
"We have five roadmaps to execute from this year onward," Mrs Supattra said. "They comprise quality construction, product design, pre-and after-sale services, innovation and community."
Pruksa will start with construction by disrupting the country's construction sector with pre-cast construction.
The company will also continue improving housing defects, which dropped to 0.47 cases per month per unit in the first quarter this year from 0.48 in the fourth quarter of 2017.
Pruksa each year delivers about 20,000 residential units, making it one of the largest housing developers in the country.
Pruksa aims to have 53.7 billion baht in presales and 50.5 billion baht in revenue, up 13% and 10%, respectively.
The company plans to launch 75 new residential projects worth a combined 66.7 billion baht.
PSH shares closed Wednesday on the Stock Exchange of Thailand at 21.70 baht, up 10 satang, in trade worth 23.1 million baht.