Bangkok – All Inspire Development Public Company Limited, or ALL, has showcased impressive performance against the trend in Q3/2019, generating total revenue of 647 million baht, a 39% YoY growth, while achieving a net profit of 129 million baht, up 172% YoY, resulting in a net profit margin of approximately 20%. The company’s performance for the first nine months has surged, with total revenue reaching 2,339 million baht, a 46% YoY increase, and a net profit of 342 million baht, up 61% YoY, signaling that Q4/2019 will be the peak of the year, benefiting from the high season, government measures to reduce transfer and mortgage fees, and lowered policy interest rates, all contributing to increased sales value. The company is preparing a strategy to penetrate the horizontal property market comprehensively, reinforcing its position as a leading real estate developer ranked among the top 10 in the country.

            Mr. Thanakorn Thanawirith, CEO of All Inspire Development Public Company Limited (ALL), a provider of residential real estate services for both high-rise and low-rise properties, as well as related businesses, stated that the company has consistently adapted its business plans to align with all circumstances and economic conditions. The business strategy focuses on developing condominium projects along the electric train lines and targeting real demand buyers at appropriate price levels, resulting in positive responses for every project. This has led to significant success in the overall performance during the first nine months of the year (January – September 2019), reflected in revenue, net profit, and presales. Furthermore, the company has successfully developed projects that meet current consumer demands, as evidenced by accumulated sales figures.

            For the performance in Q3/2019 (July – September 2019), the company reported total revenue of 647 million baht, an increase of 39% from 466 million baht in the same period last year, with a net profit of 129 million baht, up 172% from the previous year, resulting in a net profit margin of approximately 20%. The main contributing factor was the continuous delivery of projects, primarily driven by property transfer revenue of 2,031 million baht, a 45% increase compared to 1,399 million baht in the same period last year. The significant revenue increase stemmed from the transfer of ownership of completed condominium units scheduled for transfer in 2019 from three projects: The Excel Kukat, valued at 720 million baht; Rise Rama 9, valued at 1,600 million baht; and The Vision Ladprao – Nawamin, valued at 1,400 million baht.

            “As of the end of Q3/2019, the company has a backlog of sales awaiting transfer valued at over 11,400 million baht. This backlog consists of 300 million baht from townhome projects, 3,400 million baht from high-rise projects, and 7,700 million baht from low-rise projects, which will gradually recognize revenue over the next 2-3 years (2019 - 2021). This gives the company confidence that its performance over the next three years (2020 - 2022) will continue to grow from the gradual recognition of this backlog,” Mr. Thanakorn stated.

            The improved performance in Q3/2019 has led to remarkable growth in the first nine months of 2019, with total revenue of 2,339 million baht, a 46% increase from 1,602 million baht in the same period last year, and a net profit of 342 million baht, up 61% from 213 million baht in the previous year, resulting in a net profit margin of approximately 15%. The primary reason for this growth was the property transfer revenue of 2,031 million baht, a 45% increase from 1,399 million baht in the same period last year. The notable revenue increase was driven by the transfer of ownership of completed condominium units scheduled for transfer in 2019, while the gross profit margin for the first nine months stood at 36%, with a net profit margin of 15%.

            “Sales in the first nine months of 2019 reached 6,500 million baht, accounting for approximately 90% of the annual sales target of 7,000 million baht. The projects contributing to achieving this sales target include those currently on sale and those launched in 2019, such as The Excel Ladprao – Sutthisan, The Vision Ladprao – Nawamin, and Impression Ekkamai, all of which have received continuous positive responses,”

            Mr. Thanakorn further stated that Q4/2019 is expected to be the best quarter of the year, as it coincides with the high season for the real estate business. Additionally, the government has implemented measures to reduce transfer fees from 2% to 0.01% of the appraised price and mortgage fees from 1% to 0.01% for residential properties priced below 3 million baht. Recently, the Monetary Policy Committee (MPC) has reduced the policy interest rate by 0.25% per annum from 1.50% to 1.25%, effective immediately. This reduction will benefit the real estate sector by lowering the monthly installment payments for homebuyers, thereby increasing consumer purchasing power, which will positively impact the real estate market in Q4/2019.

            The company’s operational plans and strategies reinforce its confidence in achieving significant growth in 2019, with total revenue expected to increase dramatically compared to the previous year, while sales are projected to exceed 7,000 million baht.

            The CEO of All Inspire Development Public Company Limited added that the company plans to deepen its business strategy to reinforce its position as a comprehensive real estate developer ranked among the top 10 in the country, as per its vision. This includes developing real estate across all dimensions to meet consumer demands, starting with investments in leasing rights for The New Forum Plaza shopping center in Chonburi, which is expected to be completed and commercially operational in the second half of 2020, generating an average rental income of 200 million baht per year from 2021 onwards throughout the 29-year lease term.

            Additionally, the company plans to expand further into the horizontal property market, such as single houses, duplexes, and townhomes. Currently, there is one low-rise project, The Vision Ladprao - Nawamin, which is a townhome project. The company believes that the demand for horizontal housing is increasing, prompting a strategy adjustment to diversify housing types to meet the varied needs of consumers, while continuing to focus on developing condominium projects along electric train lines.

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