The LPN Group has announced its business plan aiming for continuous growth over the next 3 years, designating 2018 as the “Year of Change: A Year of Transformation”. This will be achieved through two main business segments: the real estate development sector and the service sector, with plans to launch a total of 14 new projects, both high-rise and low-rise, valued at 18 billion baht. The company is confident that in 2018, its performance will recover with sales reaching 20 billion baht, while total revenue from sales is targeted at 12 billion baht.

          Mr. Opas Sripakdi, CEO and Managing Director of L.P.N. Development Public Company Limited (LPN), revealed that 2017 was the first year that LPN and its subsidiaries undertook a major business restructuring towards a “new context of sustainability” by dividing into two business groups: the real estate development sector (Developer) and the service sector (Service Provider). This year has been designated as the “Year of Change” or “YEAR OF SHIFT”, adjusting the target market from middle to middle-lower to middle to middle-upper, along with setting short-term goals and strategies to clear ready-to-move-in inventory. The company achieved this goal, managing to sell approximately 7 billion baht worth of inventory, or about 50% of the total inventory value.

          In 2017, the company and its subsidiaries reported a net profit of 1,062 million baht, with revenue primarily coming from the real estate development sector, operating through two companies: L.P.N. Development Public Company Limited (LPN) and Prasanti Company Limited (PST). After LPN adjusted its strategy to focus on the target market from middle to middle-lower to middle to middle-upper, it gradually launched 10 projects in this target market throughout 2017, with a total sales value of approximately 14 billion baht. This resulted in sales increasing from 8.7 billion baht in 2016 to approximately 16 billion baht in 2017, a growth of about 90%, nearly doubling. Revenue stood at 9,655 million baht.

          As for Prasanti Company Limited (PST), its performance was satisfactory, with revenue contributing positively from the development of condominium projects for sale. Last year, Prasanti launched 5 new projects with a total sales value of 2,450 million baht, achieving sales of 1,750 million baht and sales revenue of 1,000 million baht, growing by 27% and 18% (respectively) compared to 2016.

          Meanwhile, the service sector operates through three companies: Lumpini Property Service and Care Co., Ltd. (LPC), Lumpini Property Management Co., Ltd. (LPP), and Lumpini Project Management Service Co., Ltd. (LPS). This sector has gained confidence and started providing services to several external organizations, with revenue growing by 10%, totaling 970 million baht.

2018: The Year of Change

          The adjustments made last year have led to a clear recovery in 2018, designated as the “Year of Change: A Year of Transformation”. This year will see changes in various aspects, including strategies to increase revenue focusing on expanding the income base from core and related businesses, as well as increasing capital in related businesses. Additionally, there will be changes in the board structure, with new executives brought in to strengthen the team, alongside personnel development, IT system enhancements to support changing business needs, and brand rebranding to align with LPN and its subsidiaries' growth plans over the next three years (2018-2020) through the two main business segments: real estate development and services. The revenue growth target for the real estate development sector is set at 35-40%, while the service sector aims for 20% growth.

          In 2018, the company targets total sales of 20 billion baht, with 17 billion baht from residential condominiums and 3 billion baht from houses. The sales revenue target is set at 12 billion baht, divided into 10.5 billion baht from residential condominiums and 1.5 billion baht from houses. Additionally, the company aims to launch new projects valued at 18 billion baht, with 15 billion baht from residential condominiums and 3 billion baht from houses. However, the company also has approximately 5.9 billion baht in sales awaiting revenue recognition in 2018, accounting for 50% of the total revenue target. As of the end of 2017, the total backlog was valued at 7.4 billion baht.

          Meanwhile, Prasanti Company Limited plans to launch a new project in 2018 with a total sales value of approximately 850 million baht and has set a sales target of 2 billion baht, with a revenue target of 1.5 billion baht.

          In conclusion, Mr. Opas stated that the company believes the changes occurring in 2018 will pave the way for sustainable growth in the future. For the rebranding of the LPN brand, the company has hired a professional firm with extensive experience and a long-standing reputation in the industry, expecting to see clear changes in the company in the second half of 2018.

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