SET-listed developer AP Thailand plans to launch 48 new projects worth a combined 58 billion baht, a lower sum than last year, aiming for growth of 10-11% in presales to 57 billion baht, with revenue rising to 53.7 billion.
Vittakarn Chandavimol, chief of corporate strategy and creation, said the company's existing projects totalling 164 sites were sufficient for revenue and presales targets this year.
"The Thai economy still presents numerous challenges and another tough year is expected, with lingering impact from various factors continuing from 2023," he said.
These include the global economy, which is hampered by geopolitical conflicts, and consumer confidence in the Thai economy.
"Conducting business this year still requires caution," said Mr Vittakarn.
To cope with these challenges, the company will still maintain financial stability through rigorous financial discipline, aiming to achieve a flexible and sufficiently robust financial condition to support long-term business endeavours.
As of the end of 2023, its debt-to-equity ratio stood at 0.79 times. It had an available credit line of 12.7 billion baht from financial institutions, capital from Japanese partner Mitsubishi Estate totalling 12.6 billion baht and cash flow of 2 billion baht.
The majority of the new projects being launched this year will consist of twin houses and townhouses, totalling 23 projects worth 19.3 billion baht, followed by single detached houses with 15 projects worth 13 billion baht.
Two of the new single detached house projects will offer units priced at 100 million baht and above, with a usable area of 1,000 square metres, located in Krungthep Kreetha and Pinklao.
AP will also launch six condo projects worth 12.5 billion baht, two of which will be joint venture projects with Mitsubishi Estate, totalling 7.2 billion baht.
"The condo market is rebounding and is expected to reach a pre-pandemic level this year," said Mr Vittakarn. "Last year we had a growth of 57% in condo presales to 17.9 billion baht and this momentum will continue in 2024."
There will be four projects worth 3.2 billion baht in provinces including new locations like Songkhla and Suphan Buri and an existing one, Rayong.
Last year, AP recorded 51.4 billion baht in presales which rose by 2% from 2022 with consolidated revenue of 48.75 billion baht, a slight drop of 1.3%. Net profit was 6 billion baht, up 3%.
AP has a budget of 17 billion baht for land acquisition this year, after spending 16.8 billion baht last year.