Singha Estate eyes tripling revenue in three years
published : 2 Mar 2021 at 06:09
newspaper section: Business
Singha Estate Pcl aims to triple annual revenue to around 20 billion baht in three years and grow assets to 80 billion from 65 billion baht at the end of 2020, while also growing its margins.
The firm announced that it is pursuing a strategic broadening of its business by integrating traditional property businesses with industrial estates, power generation, engineering services and other related businesses.
"This is a milestone year that marks our transition to the next phase of Singha Estate's development journey," Chutinant Bhirombhakdi, chairman of the board of directors of Singha Estate, said.
"We are embracing complementary and innovative businesses to become one of Thailand's foremost enterprises that leverages the synergies between property, power generation, and related services to deliver high growth with strong returns."
"The emergence of many extra- large-scale development projects and Singha Estate's integrated approach that combines hospitality, residential, commercial and industrial property development with power generation and related innovative services and businesses will give us unrivalled advantages in capturing some of these huge, new opportunities," Thitima Rungkwansiriroj, chief executive of Singha Estate, said.
Thitima: Strong financial position
Mrs Thitima said the Covid-19 pandemic had affirmed the company's decision to structure and balance its business across four, connected platforms to secure dependable returns in an increasingly unpredictable local and global business environment.
In 2020, three of the business platforms -- commercial property, residential property, and resorts and hotels -- contributed 96% of the company's core revenue.
"We now wish to ensure that our fourth platform – new businesses that complement our core property businesses – may contribute a significantly greater amount," she said.
"Our strong financial position evidenced by our low debt-to-equity ratio of 0.96 times and access to 25 billion baht in credit facilities makes this a good time to build the fourth platform."
Mrs Thitima said Singha Estate aims to enter local and global partnerships that will bring competitive expertise and additional global reach.
Singha Estate's commercial property businesses include 140,000 square metres of commercial office and retail space that contributed 15% of total revenue in 2020.
It has 39 hotels and resorts with 4,647 keys across five countries, contributing around 24% of revenue.
The company also has 23 residential development projects that include landed residential properties and condominiums under the Santiburi brand, The ESSE condominium project and others contributing 57% of revenue.