Origin is excited as Hong Kong investors signal interest in investing after seeing a revenue growth plan of 20% per year for the next 5 years, aiming to exceed 27 billion baht by 2022. The company is confident in adapting to the Bank of Thailand's LTV control measures. Kasikorn Bank maintains a "buy" recommendation with a target price of 16.30 baht.

Mr. Pirapong Jaroonaek, CEO of Origin Property Public Company Limited (ORI), a developer of condominiums under the brands Park Origin, Knightsbridge, Notting Hill, Kensington, and the Britania housing project, revealed that the company recently conducted a roadshow to meet institutional investors in Hong Kong. The investors expressed their admiration and positive signals after reviewing the company's business expansion plan, which covers both residential real estate and recurring income-generating businesses, along with a continuous revenue growth target.

"We have demonstrated our direction and business expansion plan with a revenue growth target of 20% per year over the next 5 years, increasing from less than 10 billion baht in 2017 to 27 billion baht in 2022, which greatly impressed them," Mr. Pirapong stated.

He further mentioned that the upcoming government measures, such as the Bank of Thailand's LTV control, will have a limited impact on the mid to lower market segments. For the upper-middle market, which is the main segment of the company's current backlog, more than half of the customers pay for their units in cash. The company is confident in its ability to adapt to these policies, as it has already laid the groundwork to expand its residential business across all segments. The company is ready to adjust its 2019 business plan to align with the new regulations, focusing more on the upper-middle market and developing mid to lower projects only in high-demand areas to mitigate the impact of policy restrictions.

"In recent years, we have proven to the market that we are skilled in selecting suitable locations by employing strategies to penetrate markets with potential but relatively low competition, or Blue Ocean, which has led to the success of our projects and strong sales. Although government policies may change, we remain confident that we can develop products in suitable locations to meet consumer needs while achieving the company's goals," Mr. Pirapong added.

Kasikorn Securities noted that while ORI's stock may face valuation reductions if the Bank of Thailand implements stringent measures in November, the stock's closing price recently traded at a PER of 6.84 times and 5.54 times for 2018-2019, respectively, with a dividend yield (DY) exceeding 5.8%, making it very attractive.

Regarding operational status, the horizontal development and recurring income businesses, including hotel operations and retail management, will be key growth drivers for ORI in achieving its revenue target of 27 billion baht by 2022, with a continuous annual growth of 20%.

Additionally, plans for joint ventures (JVs) and plans to list subsidiaries on the stock exchange are also important factors that will help ORI's business grow robustly.

They maintain a "buy" recommendation with the same target price for mid-2022 at 16.30 baht, comprising 14.90 baht from the residential business based on a PER of 8.25 times and 1.40 baht from the recurring income business.

Origin Property Public Company Limited has a diverse business structure, including: 1. Project Development Business, having developed approximately 54 condominium projects with a total project value of over 82 billion baht; 2. Recurring Income Business, such as hotels, serviced apartments, and retail; 3. Service Business, including property management, real estate brokerage, and consulting services, with a vision to continuously expand into new business types to become a comprehensive real estate operator.

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