9M/61 Real Estate Performance


             As we approach the end of 2018, the latest performance report for the real estate sector covers the first nine months of the year 2018 (9M/61). TerraBKK has compiled data from 21 major companies that disclosed their information on the Stock Exchange of Thailand. It was found that Pruksa Holding (PSH) generated the highest revenue for the first nine months of 2018 (9M/61) at 30,576 million baht, while the highest net profit was recorded by Land and Houses (LH) at 8,204 million baht. The highest net profit margin (NPM) in the group was also Land and Houses (LH) at 27.53%. The average return on equity (ROE) for 9M/61 was approximately 15.12%, slightly up from the same period last year.

Which Real Estate Brand Generated the Highest Revenue in 9M/61?


              Pruksa Holding (PSH) achieved the highest revenue for the first nine months of 2018 (9M/61) at 30,576 million baht, primarily from townhouse and single-house sales. Following closely was Land and Houses (LH) at 29,803 million baht, and AP (Thailand) (AP) at 19,981 million baht, ranking second and third respectively.


              In the 9M/61 performance report, several real estate operators have already surpassed their total revenue records for the entire year of 2017, including:

  • Richy Place 2002 (RICHY) 2,255 million baht, up 1.7 times from last year (2017 = 1,327 million baht)
  • Nuvasiri (NUSA) 2,445 million baht, up 1.57 times from last year (2017 = 1,561 million baht)
  • Major Development (MJD) 3,873 million baht, up 1.14 times from last year (2017 = 3,411 million baht)
  • Origin Property (ORI) 10,693 million baht, up 1.07 times from last year (2017 = 9,988 million baht)
  • Munkong Housing (MK) 3,403 million baht, up 1.04 times from last year (2017 = 3,264 million baht)


Which Real Estate Brand Had the Highest Net Profit in 9M/61?


              The performance of Land and Houses (LH) recorded the highest net profit for 9M/61 in the real estate sector at 8,204 million baht, more than double that of the second place. The majority of revenue from sales still focuses on single houses, and there are profits from real estate sales for investment in the United States, as well as profits from the sale of the Grand Centre Point Hotel Ratchadamri.


              Comparing the net profit figures for 9M/61 with the previous year, three real estate operators showed a doubling of net profit for both the nine-month period and the entire year of 2017:

  • Property Perfect (PF) 518 million baht, up 2.64 times (9M/60 = 142 million baht) and up 1.82 times from last year (2017 = 285 million baht)
  • Ananda Development (ANAN) 1,708 million baht, up 2.05 times (9M/60 = 561 million baht) and up 1.29 times from last year (2017 = 1,328 million baht)
  • Origin Property (ORI) 2,400 million baht, up 1.48 times (9M/60 = 561 million baht) and up 1.19 times from last year (2017 = 2,021 million baht)


              Additionally, Nuvasiri (NUSA) continues to report a loss of 231 million baht, a trend that has persisted since 2016, primarily due to declining revenue from house and condominium sales, an inability to generate profits from rental and service businesses, and losses from several joint ventures in real estate development and health-related businesses.


Which Real Estate Brand Had the Highest Net Profit Margin in 9M/61?


              Overall, the real estate sector had an average net profit margin for 9M/61 of about 12.8%, slightly up from the same period last year (9M/60 = 9.3%). Land and Houses (LH) achieved the highest net profit margin in the real estate sector at 27.53%, followed by Quality Houses (QH) at 23.95% and Origin Property (ORI) at 22.44%, ranking second and third respectively. Meanwhile, Nuvasiri (NUSA) reported a negative net profit margin of 9.46% due to operational losses.

Which Real Estate Brand Achieved the Highest ROE in 9M/61?


            The return on equity (ROE) is a commonly used ratio to analyze business performance, reflecting the ability to manage operations to provide returns to shareholders. For the real estate sector's performance in 9M/61, the average ROE was around 15.12%, slightly up from the same period last year (9M/60 = 13.11%). Origin Property (ORI) had the highest ROE in the real estate sector, followed by Richy Place 2002 (RICHY) and Sena Development (SENA) in second and third places respectively. ---TerraBKK

Article by: TerraBKK Investment Tips
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