Munkong Housing Public Company Limited (MK) has reported its performance for the year 2019, achieving total revenue from sales and services of 4,438.11 million baht. Notably, revenue from rental and service businesses, as well as property management, grew by 27%, or over 500 million baht. The company emphasizes its vision for 2020, focusing on developing products that align with the behaviors and preferences of modern consumers under the concept of well-being, while maintaining operational standards and progressing towards a 50/50 profit ratio between sales and rental/service businesses by 2021.

Mr. Suthep Wongworaseth, Chairman of Munkong Housing Public Company Limited (MK), a property developer for sale, rental, and services, revealed the company's financial results for 2019 (ending December 31, 2019), stating that the company and its subsidiaries generated total revenue from sales and services of 4,438.11 million baht, with revenue from property development for sale amounting to 3,936.77 million baht. Meanwhile, revenue from rental and service businesses reached 501.34 million baht, marking a significant growth of 27% compared to the previous year, and the company achieved a net profit of 177.45 million baht, translating to earnings per share of 0.16 baht. Over the past four years, the group has successfully executed its long-term revenue restructuring plan, increasing the gross profit margin from rental and service businesses to 25.8% in 2019, up from 4.5% at the end of 2015.

“In 2019, the company generated revenue from property development of 3,936.77 million baht, a slight decrease of 216.16 million baht or 5.2% from 2018. This was influenced by various factors in the real estate sector, including stricter regulations on housing loan-to-value (LTV) ratios, which affected consumers' ability to purchase homes. However, the company implemented measures to assist customers in mitigating the impact of these regulations, such as providing advice on preparing financial information, facilitating preliminary credit approvals, and allowing customers to check their credit reports with commercial banks before making reservations. Additionally, at the end of the year, the government introduced measures to reduce registration fees for property transfers and mortgage registrations for homes priced below 3 million baht, and the company has several projects within this price range. Moreover, over 70% of the company's customers are not burdened by housing loan contracts, allowing the company to maintain sales revenue from property projects close to the previous year's levels,”

Mr. Suthep continued, “Regarding revenue from rental and service businesses, in 2019, we achieved 501.34 million baht, an increase of 107.4 million baht or 27% from the previous year. The primary revenue source came from the Bangkok Free Trade Zone project of Prospect Development Co., Ltd., amounting to 291.88 million baht, which increased by 78.53 million baht, representing a growth rate of 36.81%. The Bangkok Free Trade Zone project expanded its rental space to 193,872 square meters. Revenue from the golf course and property management business was 119.77 million baht, an increase of 10.52 million baht or 9.63%. Additionally, revenue was generated from the Park Court Sukhumvit 77 project and Your Property Management Co., Ltd.

Despite the slowdown in revenue from property development due to various factors last year, the company managed to control operational costs, maintaining a gross profit margin of over 30%, similar to the previous year, while also enhancing the efficiency and standardization of its services.

“For our business operations plan in 2020, Munkong Housing Public Company Limited will focus on developing products that align more closely with the behaviors and preferences of modern consumers, considering well-being to enhance product value and expand our target customer base. This includes careful selection of locations, functional design of living spaces, amenities in common areas, and security systems, while continuing to expand the business according to our five-year revenue structure plan, aiming for a 50/50 profit ratio between both sides by 2021,” Mr. Suthep stated.