Bangkok--28 Aug--The Momento
ALL Inspire Development PCL. (ALL) outlines its strategy in the second half of this year to develop new Low rise and High Rise condominium and townhome projects worth 12.5 billion baht, targeting more real demand. CEO "Thanakorn Thanawarith" is confident to achieve 4.5 billion baht of total revenue in 2019, the company's highest record, and now have a backlog of 8 billion baht after announcing a strong first-half performance. ALL made total revenue of 1.692 billion baht in the first half of 2019, rising 49% from the same period last year, and net profit of 213 million baht, up 29% year-on-year. For the Q2/2019, its total revenue was 840 million baht, growing 49% year-on-year in all aspects. The overseas sal es team comprising four nationalities will be introduced under Thai D Real Estate Co., Ltd. expecting to expand the portfolio of foreign customers.
Mr. Thanakorn Thanawarith, Chief Executive Officer of All Inspire Development PCL. or ALL, a leading residential developer for condominium and townhome projects as well as related property business to provide Total Real Estate Solutions for customers, disclosed the company's performance in the first half of 2019 grew as expected. Its total revenue stood at 1.692 billion baht, up 49% year-on-year, and net profit was 213 million baht, rising 29%. For the second quarter performance, ALL recorded total revenue of 840 million baht, growing 49% year-on-year, and net profit of 116 million baht, up 44%. Contributing to the strong performance was the efficiency of management, which paid attention on developing condominium projects along the mass-transit system and in potential locations to reach real customer demand. This makes all projects to truly serve customer needs in all aspects.
Meanwhile, the success in the first half is supporting the company to expand its investment in the second half of this year. ALL plans to launch new projects worth 12.5 billion baht ranging from low-rise to high-rise condominiums and townhome projects. It will introduce The Vision Ladprao – Nawamin Phase II on this August 31.
The Excel Ladprao-Sutthisarn project, which was launched in early August, got an overwhelming response, with the pre-sale of 850 million baht in one day or 70% of the project's total sales of 1.2 billion baht. This big success is a proof that the new projects to be launched in the coming months will also get positive feedbacks from customers.
"We have 3 newly-built residential projects worth combined 5 billion baht including The Vision Ladprao – Nawamin, which is valued 1.4 billion baht, 2. Impression Phuket worth 2 billion baht, and The Excel Hideaway Sukhumvit 71 valued 1.6 billion baht".
With all these new project plans, the company is confident that its full-year revenue in 2019 will exceed 4.5 billion baht. It has backlog of 8 billion baht as of June 30, 2019, which will be realized in the next 3-4 years. Of the total, 5.52 billion baht will come from low-rise condominium, 2.24 billion baht from high-rise condominium, and 240 million baht from townhome projects. Currently, the company has an inventory of completed units worth 201 million baht from The Excel Khukhot and Rise Rama 9 projects.
Moreover, CEO of ALL noted that the company has plans to diversify its business overseas in order to increase the proportion of foreign customers. Today (Aug 28), the company introduces its overseas marketing and sales team under which will be under Thai D Real Estate Co., Ltd. the property broker for foreign markets. The launch of overseas sales team comprising four nationalities today is a new milestone for ALL to expand its business to have sales offices in Shanghai and Taipei, two Chinese metropolitans which have big populations. This will allow ALL to penetrate the Chinese customer market significantly in the future.
Together with this, the CEO reveals about the investment in the lease rights of The New Forum Plaza in Chon Buri province, which covers 11-3-74 rai and has Gross Building Area of 34,952 square meters, and Gross Leasable Area of 11,593 sq. m The lease will be 29 years and valued 600 million baht. This investment is the business expansion from residential property to shopping mall. So far, the project has started its construction activities since July this year and is expected to finish in the middle of next year and open for commercial services in the second half of 2020. ALL expects to generate monthly incomes more than 10 million baht during the first stage. When the project has full service in 2021, the income will reach 200 million baht per year. This will result in the revenue from this business will contribute 5.8 billion baht for the whole lease period, of which 90% of revenue will come from rents and 10% from the others.
"With our determination to generate return on investment to shareholders after becoming a listed company on the MAI since May, our first-half performance is quite strong, outperforming the overall residential sector, and this reflects our hard working and management teamwork. Even the market situation in the second half still has many challenges, we believe the overall property market will improve and our performance in all aspects will grow as expected. And one of our developments is the opening of sales offices in Shanghai and Taipei, the two cities among the world's highest population, and the quality overseas sales team under Thai D Real Estate Co., Ltd. will drive our sales among foreign customers and build our branding in the eyes of global people in the future," Mr.Thanakorn said.