Ananda Development Public Company Limited (ANAN), a leader in urban residential development and the top market player for condominiums near BTS stations, showcases its operational potential and announces another successful quarter with stable growth. In Q2/2017, the company achieved a net profit of 279 million baht, a 33% increase from the same period last year and a 99% increase from the previous quarter. The operational profit reflects effective management in line with the planned operations, generating revenue of 3,752 million baht, a 30% growth compared to the same period last year and a remarkable 62% increase from the previous quarter. The sales figures for Q2 exceeded the target of 7,352 million baht by 50%, driven by new project sales and previously launched projects. Additionally, the company has raised its annual sales target to 31,036 million baht and its transfer target to 25,047 million baht from the previous 25,000 million baht, anticipating a 58% growth in transfers, projecting an increase from below 10,000 million baht in 2015 to nearly 60,000 million baht in 2020.

         Mr. Chanond Ruangkritya, CEO and Managing Director of Ananda Development Public Company Limited stated that the company has a satisfactory overall business performance, evidenced by strong revenue and net profit figures. The Q2/2017 results show a 33% increase in profit from the same quarter last year, reaching 279 million baht, with revenue of 3,752 million baht, a 30% growth from the same period last year, marking 2017 as a "Harvest Period". The company also successfully launched five new condominium projects at the Ananda Urban Pulse event, achieving sales above the set target, resulting in a backlog of over 49,700 million baht at the end of Q2 2017, the highest on record, up 17% from the previous quarter and 29% from the same period last year.

           In Q2, the company launched new condominium projects near BTS stations in five locations and one new horizontal project, with a total project value of over 22,800 million baht. This includes condominium projects valued at over 21,900 million baht, such as Ideo Q Victory near BTS Victory Monument worth over 3,200 million baht, Ashton Asoke-Rama 9 near MRT Rama 9 worth over 6,400 million baht, Ideo Sukhumvit 36 near BTS Thonglor worth over 4,300 million baht, Ideo Rama 9 New Cut near MRT Ramkhamhaeng 12 worth over 3,000 million baht, Elio Del Nest worth over 5,000 million baht, and Unio Town Lam Luk Ka Klong 4 worth over 900 million baht, a new horizontal project near Klong 4 station.

           Sales from previously launched projects in Q2 reached 11,051 million baht, exceeding the target of 7,352 million baht by 50%. The strong sales were partly due to better-than-expected customer demand and the earlier-than-expected launch of new projects worth over 16,000 million baht compared to the initial targets set at the beginning of the year. In the first half of the year, the company achieved 50% of its annual sales target and plans to launch eight more projects. This success is attributed to the projects being located near BTS stations, providing convenient living conditions, incorporating technology into the projects, and offering reasonable prices that are truly accessible.

          The company maintained a sales rate higher than the set target in the first two weeks from the launch of new projects until the end of Q2, achieving 100% sales closure for the Ideo Q Victory project, which attracted over 4,000 customers for only 348 units available. Additionally, the Ashton Asoke-Rama 9 project had a sales rate of over 74%, Ideo Rama 9 New Cut had a sales rate of 54%, and Ideo Q Sukhumvit 36 had a sales rate of 45% of the units available during the new project launch. Typically, the company aims for a sales rate of 40% in the first three months, which received positive feedback from customers, indicating a strong demand for housing across all price ranges, especially for projects that are valuable, of good quality, and conveniently located near BTS stations.

          In Q2/2017, the company generated revenue from property sales of 2,661 million baht, a 69% increase from the previous quarter and a 5% increase from the same period last year. Additionally, the company had other income of over 1,090 million baht, primarily from joint venture project income, leading to total revenue of 3,752 million baht, a 30% increase from the same period last year and a 62% increase from the previous quarter, with a net profit of 279 million baht, a 33% increase from the same period last year and nearly double from the previous quarter. The company also achieved a net profit margin of 7%, up from 6% in the previous quarter.

          In this quarter, the company demonstrated strong revenue and profit during what is termed the "Harvest Period," evident from the tripling of transfer volumes from 2015 to 2018, with a growth of 58% from 2016. The transfer volume for 2017 is projected at 25,047 million baht. The backlog for revenue recognition (Backlog) to be transferred in 2017 is valued at over 16,300 million baht, accounting for 81% of the transfer target for the next six months, including the transfer share from Ananda and Mitsui Fudosan from 10 condominium projects scheduled for completion and transfer in 2017, compared to five new condominium projects completed in 2016.

          The company continues to maintain financial discipline and successfully grow its business while keeping the ratio of interest-bearing debt net of cash to equity at only 0.77:1. Additionally, the company's cash flow remains strong, maintaining a large cash reserve of over 1,800 million baht, supported by ongoing strong backing from leading financial institutions and having various options for funding sources to meet the company's cash flow needs throughout the year, adaptable to the situation. In April 2017, the company issued bonds totaling 3,000 million baht for a 3-year term at a bond cost of only 3.95%, significantly down from 5.40% when bonds were issued three years ago,” Mr. Chanond stated.

          The company's board has approved the payment of the highest interim dividend ever to shareholders at 0.06 baht per share, an increase of 50% from the interim dividend paid last year, as part of the policy to continuously increase dividends for shareholders following fundraising and listing on the stock exchange.

 

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