N.C. unfazed by plan to up daily wage

SET-listed developer N.C. Housing Plc is not too concerned about the planned increase in the minimum daily wage, thanks to its prefabrication construction technology and ongoing cost control measures.

Prapat Vatcharonurak, vice-president for business development, said the new government's policy to increase the minimum daily wage is expected to have a minimal impact on development costs.

"We will continue to exercise cost control measures," he said. "We have partnered with a prefabrication company to assist in controlling costs and reducing development time. By reducing development time, we can also save other overhead expenses."

The company remains steadfast in its presales and revenue targets for 2023, aiming for 5.5 billion baht and 3.2 billion baht, respectively, as the positive momentum in the first quarter might continue for the whole year, Mr Prapat said.

"If the establishment of a new government is delayed and subsequently affects government budget spending, we are not concerned because our main products are low-rise houses," he said.

These houses fall within the price range of 3-7 million baht per unit, which is in real demand. The company's projects are also strategically located in areas with high demand, he added.

In the first quarter of 2023, N.C. recorded 1.32 billion baht in presales, up 14%.

Revenue stood at 664 million baht, rising slightly from 662 million baht recorded in the corresponding period last year.

Although there was a slight decline of 0.24% in residential sales revenue, amounting to 647 million baht, it was in line with the company's projections, as it accounted for 24% of the target.

Walatchanat Rujidasirisakul, N.C.'s senior vice-president and acting chief financial officer, said revenue from rents and services, which comprises sports & wellness and elderly care, rose 41% to 24 million baht.

Net profit decreased by 29% to 63 million baht. The net profit margin to revenue dropped to 9.54% from 13.4% due to higher costs and an expansion, with many more projects being launched in the first quarter this year.

Mr Walatchanat said 41% of the total revenue from residential sales was from single detached houses, followed by townhouses (37%), duplex houses (21%) and condos (1%).