Lalin Property Public Company Limited (LALIN) sees a positive trend in the Thai economy, supported by expanding exports and tourism, as well as government investment plans. The company plans to continue its business expansion in the second half of the year after achieving outstanding results in the first half. In the first six months of 2018, the company reported revenue of 2,082 million baht, a 35% increase from the same period last year, with a net profit of 402 million baht, growing by 41% from the previous year. This marks three consecutive years of growth. Additionally, the company is preparing to announce an interim dividend payment to shareholders at a rate of 0.165 baht per share, with the record date set for August 30, 2018, and payment scheduled for September 7, 2018.

Mr. Churachart Chakrakul, Deputy Managing Director of Lalin Property Public Company Limited (LALIN), a real estate developer under the concept of “Homes Built on Good Intentions”, shared insights on the real estate market outlook for the third and fourth quarters of 2018, indicating that the Thai economy is likely to continue expanding. Overall, the economy is expected to grow by around 4 – 4.5% for the year, supported by strong export and tourism sectors. There are also signs of improved consumption and private investment, while government spending is expected to increase in the second half of the year. However, the real estate sector must closely monitor the growth of the Thai economy, as the expansion remains concentrated in certain industries. Additionally, high household debt levels continue to suppress domestic purchasing power, along with risks from rising interest rates, which also affect purchasing power. External risks, such as international trade wars, should also be monitored, as they could impact global and Thai economic growth.

In terms of strategy, the company has already assessed the economic direction since the beginning of the year and has a business plan that aligns well with the situation, resulting in strong performance. In the second quarter of 2018, the company reported total revenue of 1,119.6 million baht, a 27% increase compared to the same period in 2017, with a net profit of 219.7 million baht, up approximately 29% from the previous year. This marks a growth rate exceeding 25% consistently over the past two years. In the first half of the year, the company achieved new sales exceeding 2,800 million baht, surpassing its set target, leading to confidence that the overall performance for this year will exceed the established goals.

For the first six months of 2018, the company reported revenue of 2,082 million baht, a 35% increase from the same period last year, with a net profit of 402 million baht, growing by 41% from the previous year. This marks three consecutive years of growth. The company has announced an interim dividend payment to shareholders at a rate of 0.165 baht per share, with the record date set for August 30, 2018, and payment scheduled for September 7, 2018.

In terms of capital structure, although the company continues to expand its projects, it maintains a Gearing level better than the industry average. This is partly due to efficient business cycle management, resulting in internal cash flow available for business expansion. As of the end of the second quarter, the company had a debt-to-equity ratio (D/E Ratio) of 0.76, down from 0.82 at the end of the first quarter. This debt-to-equity ratio is lower than the overall industry average of approximately 1.40, reflecting a strong financial position and significant potential for future business expansion.

Mr. Churachart discussed the business plan for the third and fourth quarters of 2018, stating that the company will continue to expand its business, preparing to launch two new projects within August and expecting to open another 3-4 projects for the remainder of the year. This aligns with the strategic plan focused on Quality, CRM, and Service Mind. Additionally, the company is set to aggressively market both online and offline, selecting media and tools that suit the lifestyles of target customers and locations, while increasing the budget for e-Marketing, as it is an effective channel that can reach specific customer groups, enhancing the efficiency of marketing expenditures. The company is confident that for the entire year of 2018, it will achieve the revenue recognition target set at 4,000 million baht.

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