Bangkok--15 Aug--L.P.N. Development
L.P.N. Development Public Co., Ltd. is the leader in the sector of residential condominium development for those who earn middle and relatively low income with high market share in the aspect of registered units. In the first half of the year 2006, the company continued to use the strategies of “Cost Leadership” and “Speed” to push the corporate management into the highest efficiency, which credited achievement of the appointed business plan.
Regarding the revenues in Q2 of 2006, the company, its affiliates and joint company have total revenues of Baht 1,942.78 Million, greater than those of Baht 770.15 Million, in the same quarter of 2005, or 152.26% more. This was the consequence of the unit ownership transfer of the projects “ Lumpini Ville Sukhumvit 77 “ and “ Lumpini Place Pinklao “ which exceeded the expected target for 56.67% more. This indicates that the demand of the residential condominiums is still high and the customers of the company are the group that has the real demand for real residence. The net profit equals Baht 322.08 Million, calculated as 160.38% greater than Baht 123.70 Million, in the Q2 of 2005. This was also the result of the right strategies as mentioned above.
The gross profit margin ratio from the sales decreased from 38.32% in Q2 of 2005 to 32.86% in current quarter. However, the company still maintained the level of the gross profit margin ratio of at least 30% as appointed. When considering the statement of cash flow on 30th June, 2006 the cash remains Baht 448.66 Million, increasing from Baht 372.11 Million in the same period of the previous year or 16.26% more. This was the result of the ownership transfer of 2 projects in Q2 which highly exceeded the expected target.
The debt to equity ratio on 30th June, 2005 and 2006 increased from 0.83 : 1 to 0.84 : 1 respectively. When considering only the interest bearing debt, ratio also decreased from 0.54 : 1 in the last year to 0.45 : 1 .
By the way, in Q3 — Q4 of 2006, there will be the ownership transfer of the project “Lumpini Ville Cultural Center” which consists of 8 — 9 storey buildings , 1,324 units, total value of Baht 1,950.0 Million, to be completed in August, 2006. Moreover, there are many pending units of the projects “Lumpini Ville Sukhumvit 77” and “Lumpini Place Pinklao” from Q2 to be transferred the ownership afterwards equal to Baht 890.0 Million.
Summarized Table
Item Consolidated
2Q 06 2Q 05 % Change 1H 06 1H 05 % Change
1. Total Revenues (Million Baht)
1,942.78 770.15 152.26% 2,367.90 1,476.30 60.39%
2. Gross Margin (G/P) from Sales (%)
32.86% 38.32% (5.46%) 33.41% 37.21% (3.80%)
3. G/P from Rent & Services (%)
58.22% 30.54% 27.68% 48.76% 24.58% 24.18%
4. G/P from Management Service Fee (%)
14.36% 51.61% (37.25%) 39.95% 59.27% (19.32%)
5. G/P from Line 2 — 4 (Million Baht)
629.21 294.98 113.31% 778.28 558.11 39.45%
6. G/P from Line 2 — 4 (%)
32.68% 38.70% (6.02%) 33.69% 38.08% (4.39%)
7. Selling and Administrative Expenses (Million Baht)
202.89 99.52 103.87% 308.92 188.35 64.01%
8. Selling and Administrative Expenses (%)
10.44% 12.92% (2.48%) 13.05% 12.76% 0.29%
9. E.B.I.T. (Million Baht)
441.45 201.56 119.01% 523.94 377.85 38.66%
10. E.B.I.T. (%)
22.72% 26.17% (3.45%) 22.13% 25.59% (3.46%)
11. Net Profit (Million Baht)
322.08 123.70 160.38% 372.68 232.64 60.20%
12. Net Profit (%)
16.58% 16.06% 0.52% 15.74% 15.76% (0.02%)
13. Earning per share (Baht)
0.22 0.09 144.44% 0.25 0.18 38.89%
14. Book value per share (Baht)
2.06 1.85 11.35% 2.06 1.87 10.16%
Click for photo release at www.thaipr.net