First Half of the Year: How Much Revenue Did the Real Estate Sector Generate? (6M/61 Results)


              As we approach the end of 2018, the latest financial results of the real estate sector have been disclosed to the Stock Exchange of Thailand, covering the first six months of 2018. The overall revenue figures for this period show considerable volatility; some companies experienced significant revenue jumps, while others saw sharp declines.


              This time, TerraBKK Research has summarized the financial results and revenue figures from over 30 public companies in the real estate sector, along with their Net Profit Margin, categorized into four main groups based on revenue levels, as detailed below:

1. Real Estate Sector with Revenue Over 10 Billion Baht

              Land and Houses (LH) maintains its position as the top revenue generator in the industry, with total revenue for 6M/61 of approximately 20.7 billion baht, achieving a Net Profit Margin of 28.37%, also the highest in the sector.

              Meanwhile, the public company that saw a significant increase in revenue for 6M/61 compared to the same period last year is Golden Land Property (GOLD) with 11.5 billion baht, thanks to successful new project launches during 2018 and ongoing sales from existing projects. AP (Thailand) (AP) reported 12.8 billion baht, primarily due to strong transfer rates from horizontal projects, which drove revenue growth.


2. Real Estate Sector with Revenue Between 5,000-10,000 Million Baht


              Overall, the Net Profit Margin for 6M/60 has increased across the board. Two companies that have consistently shown high and improving net profit margins over the past three years are Origin Property (ORI) at 22.66% and Quality Houses (QH) at 22.32%.

              In terms of financial results for the first half of 2018, Origin Property (ORI) stands out as the public company with the highest revenue in the 5,000-10,000 million baht category, reporting 6.65 billion baht, a 2.24-fold increase from the same period last year (6M/60 = 2.05 billion baht). This growth is attributed to revenue recognition from 18 condominium projects carried over from 2017, five new projects that began transferring ownership in 2018, and management fees from joint ventures with Nomura Real Estate Development Co., Ltd. Following closely is Property Perfect (PF) with 9.13 billion baht, driven by increased revenue from land and house sales, condominiums, and land sales. SC Asset (SC) reported 6.65 billion baht, with revenue from horizontal projects increasing by 48.5% and from vertical projects by 48.8% compared to the same period last year.


3. Real Estate Sector with Revenue Between 1,000-5,000 Million Baht

              Several public companies in the 1,000-5,000 million baht revenue category are well-known for their projects, both horizontal and vertical, such as L.P.N. Development (LPN), Sena Development (SENA), Major Development (MJD), and Areeya Property (A).

              The overall Net Profit Margin for this group has shown considerable volatility when compared year-on-year. Singha Estate (S) achieved a net profit margin of 21.73%, followed by Lalin Property (LALIN) at 19.26% and Richy Place 2002 (RICHY) at 18.13%. Meanwhile, Nusasiri (NUSA) and Principal Capital (PRINC) have remained in the negative for three consecutive years.

              In terms of financial results for 6M/61, three public companies saw their revenues double compared to the same period last year: Principal Capital (PRINC) grew 2.94 times due to revenue from hospital operations and property development and leasing, Richy Place 2002 (RICHY) grew 2.23 times, primarily from increased revenue recognition from vertical projects, and Nusasiri (NUSA) grew 1.08 times from land sales with buildings, up 104%, such as the sale of land for the Rama 2 project phases 2 and 3. However, revenue from house and condominium sales declined due to a slowing economy and increased loan rejection rates from banks for customers seeking loans.


4. Real Estate Sector with Revenue in the Hundreds of Millions Baht

              Overall, the financial performance of public companies with revenues in the hundreds of millions of baht has not been very good, with total revenue for 6M/61 showing a downward trend compared to the same period last year. Only N.C. Housing (NCH) managed to increase its revenue by 12% to 809 million baht (6M/60 = 719 million baht) due to improved ownership transfer capabilities from horizontal projects, including the Fah Piyaram Lake Grand project, Fah Piyaram Tendo project, Fah Towny Don Wai project, and Fah Greenery Pinklao-Sai 5 project.

              The Net Profit Margin has also shown a downward trend, with only two public companies showing an increase: N.C. Housing (NCH) at 3.26% and Rock Garden (BROCK) at 5.88%.

Article by: TerraBKK Investment Tips

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