Bangkok--14 Aug--Integrated Communication
Pruksa Real Estate achieves remarkable performance as the company posts rises in both revenue and profit for the first half of 2014. Additional 35 new projects, worth 41,400 Million Baht, are underway for the latter half of the year, bringing the total number of projects released during the year to 73 with the total value of 72.4 Billion Baht. These projects cover all segments, and the company remains positive that the targets for annual sales and revenue will be reached.
Mr. Thongma Vijitpongpun, Chairman of Executive Committee and Chief Executive Officer of Pruksa Real Estate Plc., reveals details of the company’s operating results for the first half of 2014. “The company made 18,180 Million Baht in revenue, which reflects an increase of 22.7 when compared on a year-on-year basis with the same period of 2013, during which the revenue was 15,336 Million Bath. Net profit reaches 2,935 Million Bath, which reflects 34.5% rise on a year-on-year basis when compared to the same period of last year during which the company made 2,182 Million Bath in net profit. The major source of revenue is still from sales of townhouses which make 60% of total revenue. The contributions of sales of Detached houses in the total revenue is 23% while that of sales of condominium and projects in foreign countries are 16% and 1% respectively,” he says.
“Although the economy slowed as a result of the political situation at the beginning of the year and drove the overall growth of the year’s real estate market down by approximately 7.2% when compared to 2013, Pruksa Real Estate is successful in stabilizing growth. This is mainly because the company targets customers with real demands and keep expanding its customer base strategically to cover other segments as well. Just recently, the company has unveiled “The Palm,” the project for premium detached houses priced from 9 to 25 Million Bath on Pattakarn Road, which receives numerous positive feedbacks from customers. Moreover, the company increases in its portfolio the proportion of projects in other high potential provinces such as Chiang Mai, Chonburi and Phuket. The company sets the targets for this year’s sales and revenue at 43,000 Million Baht and 42,000 Million Bath respectively. To reach these goals, the company plans to release new projects and bring the total number for this year’s project to 73 with the total value of 72,400 Million Baht, of which 80% will be low-rise projects while the other 20% will be high-rise projects. During the first half of this year, 38 projects, worth 31,000 Million Bath, have already been launched, and the rest will be continuously launched during the latter half of the year,” he adds.
Mr. Lersuk Chuladesa, Chief Operation Officer and Acting Managing Director of Pruksa Real Estate Plc., says “I am confident that in 2014, the company will reach sales and revenue as targeted. This is due to the fact that, as of the end of June, we have in total 176 active projects, worth 73 Billion Baht. Additional 35 new projects, worth 41.4 Billion Baht, will be launched during the latter half of 2014. Business cycle time management will be emphasized as a main strategy to enable the company to have information on revenue faster while reducing business risks. As of the end of June 2014 and for the low-rise housing projects, Pruksa has successfully reduced the business cycle time to 96 days from 146 days at the end of 2013. This is mainly because the company keeps bringing new innovations into its work process, including the use of Real Estate Manufacturing system in the construction process and the use of Precast materials for low-rise houses. All these efforts enable the company to control quality, reduce construction time and manage costs effectively. Recently, the company has developed knock down sanitary wares manufactured by Pruksa Precast Factory for use in the construction of some condominium projects. The company also plans to use these newly developed products in its future townhouse and detached house projects.”