Seacon forecasts 10-15% revenue growth

Seacon forecasts 10-15% revenue growth

Seacon, one of the country's oldest homebuilders, says demand for large homes and an improving economy will help drive revenue this year to 2.3 billion baht.

Managing director Manu Trakulwattanakit said the company is aiming for 10-15% revenue growth on almost 2 billion baht recorded last year.

In 2023, 50% of sales came from large family houses with at least 351 square metres of usable area priced from 8-50 million baht.

Houses sized 201-350 sq m priced 5-7.9 million baht made up 35% of sales, while 15% derived from houses covering less than 200 sq m worth 2-4.5 million baht.

Seacon sold more than 300 houses last year, with an average price of 6.7 million baht per unit.

For its 2024 target, 1.8 billion would derive from Seacon home builder, 400 million baht from its design service Seacon ID, and 100-200 million baht from the company's precast factory operations.

It also aims to increase online sales, as this channel has been growing since the pandemic, accounting for 35% of bookings in 2023.

Mr Manu said the home building trend would be dominated by large houses priced 8-50 million baht, mainly attributed to demand among wealthy buyers, unlike the mass market with less spending power that faced a higher loan rejection rate.

He said the company still has to monitor ongoing geopolitical conflicts, as they would affect oil prices and transportation costs for the industry.

Some buyers could also delay their home building plans due to uncertainty over the world economy, he said.

Mr Manu said its second precast factory located in Lam Luk Ka Klong 12 would be completed by April of this year and has a production capacity of 120,000 fabricated parts per year, or sufficient for 700-800 houses.

Combined with its existing factory in Onnut, Seacon would then be able to build up to 1,200 houses per year.

Seacon aims to serve the production capacity of 700 houses from within its affiliated companies, including SC Grand, while serving the remaining capacity via other developers.

The firm recently announced a joint-venture partnership with real estate developer Nye Estate, establishing a new firm called Nye and Seacon, with 20 million baht in registered capital.

It is developing two low-rise housing projects in Ngam Wong Wan and Kanchanaphisek, each worth over 800 million baht, which are set for completion next year.

This year Seacon launched six new house designs, on top of over 254 existing designs for its clients.

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