Ananda Development Public Company Limited (ANAN), a leader in urban residential development and the top market player for condominiums near BTS stations, has showcased its operational capabilities by exceeding expectations. In Q3 2017, the company achieved sales of 6.350 billion baht, surpassing its target by 52% from new projects and previously launched projects. Additionally, the company announced an increase in its annual sales target by 5% to 32.588 billion baht, resulting in a record backlog of over 54.4 billion baht at the end of Q3 2017, which is a 9% increase from the previous quarter and a 32% increase from the same period last year. For Q4 2017, the company aims for transfers that account for 64% of the annual transfer target of over 23 billion baht, projecting a 45% growth in total annual transfers compared to the previous year.

           Mr. Chanond Ruangkritya, CEO and Managing Director of Ananda Development Public Company Limited  stated that the company has had a successful overall business operation with impressive performance. The sales figures for Q3 exceeded the set target of 6.350 billion baht by 52% from new and previously launched projects, and the annual sales target has been raised by 5% to 32.588 billion baht, resulting in a backlog of over 54.4 billion baht scheduled for transfer within the next four years. This is a record high, with a 9% increase from the previous quarter and a 32% increase from the same period last year. In Q4 2017, the company aims for transfers that account for 64% of the annual transfer target of over 23 billion baht.

           In Q3, the company launched new condominium projects near BTS stations in two locations and three new horizontal projects, with a total project value of over 7.687 billion baht. This includes condominium projects worth over 4.435 billion baht, such as Ideo Mobi Sukhumvit 40 near the BTS Ekkamai station valued at over 2.057 billion baht, and Ideo Mobi Rangnam near the BTS Victory Monument station valued at over 2.377 billion baht. The horizontal projects, valued at over 3.252 billion baht, include the new single-house project, Ari Rama 5 – Ratchaphruek, valued at 792 million baht, located on Rama 5 Road in Nonthaburi, the Artel Kaset-Nawamin project valued at 1.658 billion baht, and the Atoll Ring Road-Lam Luk Ka project near the BTS Green Line valued at 802 million baht.

           In Q3, the company achieved sales of 9.645 billion baht, exceeding the target of 6.350 billion baht by 52%. This strong sales performance was partly due to better-than-expected customer demand and the earlier-than-planned launch of new projects worth over 4.435 billion baht. In the first half of the year, the company achieved 77% of its annual sales target and plans to launch two more new projects. The success is attributed to the projects being located near BTS stations, providing convenient living, the incorporation of technology into the projects, and affordable pricing.

           Additionally, the company reported real estate sales revenue of 1.692 billion baht, a decrease of 28% from the same period last year, while other income amounted to over 1.066 billion baht, primarily from joint venture project revenues, resulting in total revenue of 2.759 billion baht, a 7% decrease from the same period last year. The company recorded a net profit of 141 million baht, down 44% from the same period last year, mainly due to decreased revenue and increased new project launches.

           For Q4 2017, the company aims for transfers that account for 64% of the annual transfer target of over 23 billion baht, which is considered a "harvest period." In 2016, the company achieved a 65% growth in transfers compared to the previous year, and plans to grow by 45% from 2016 for transfers in 2017, targeting over 23 billion baht. The backlog to be transferred in 2017 is valued at over 13.7 billion baht, accounting for 93% of the transfer target in the next three months, including Ananda's and Mitsui Fudosan's share of transfers.

           The company maintains financial discipline and has successfully grown its business while keeping its net interest-bearing debt to equity ratio at just 0.84:1. Additionally, the company's cash flow remains strong, with over 1.4 billion baht in cash at the end of the quarter. The company continues to receive strong support from leading financial institutions and has various funding options to meet its cash flow needs throughout the year. In October 2017, the company issued bonds worth a total of 2 billion baht for a duration of three years at a bond yield of only 3.50%, marking a record low cost, down from 3.95% previously and significantly lower than the 5.40% from three years ago,” Mr. Chanond stated.

           In 2018, the company targets a 76% growth in transfers to over 40.5 billion baht, compared to the 2017 target of 23 billion baht. In 2018, the company expects to have new completed condominium projects ready for transfer, reaching up to 11 projects, an increase from 10 new projects in 2017.

           Due to the capital cycle, the company plans to launch new projects in 2018 with a project value increase of 15%, reaching over 48 billion baht, compared to over 41.8 billion baht in 2017. In 2018, the company will launch 22 new projects, including 13 condominium projects, seven of which are joint ventures with Mitsui Fudosan, and nine horizontal projects. With the increased project launch value, the company targets a 24% increase in sales to over 40.5 billion baht, compared to the sales target of over 32.6 billion baht in 2017, while aiming to maintain the net interest-bearing debt to equity ratio at approximately 1:1, aligning with the company's long-term management goals.

           “The company maintains business growth and good performance while also adhering to cost discipline in operations and borrowing. Ananda continues to lead the condominium market near BTS stations in Bangkok and is at the forefront of developing new innovations in building design and other real estate developments, aiming to remain the market leader in condominiums. The company is committed to the best and most transparent corporate governance, receiving the highest rating of 5 stars for corporate governance, up from 4 stars last year. The company also emphasizes good and transparent governance for both domestic and international investors, with the Stock Exchange nominating the company for the Excellent Investor Relations Award for 2017, and IR Magazine nominating the company for the Outstanding Investor Award in the real estate category for Southeast Asia in 2017,” Mr. Chanond concluded.

Thank you for the information from   www.ananda.co.th