Origin Reports 2019 Performance with a Net Profit of 3,027 Million Baht, Maintaining an Outstanding Net Profit Margin of 21.4%. After launching 20 projects valued at over 24,200 million baht, the company achieved sales exceeding 29,000 million baht, surpassing targets while looking ahead to 2020 with completed condominium projects ready for transfer, supporting steady revenue and profit margins. The board has approved a semi-annual dividend payment of 0.29 baht per share, equating to a Dividend Yield of over 9% based on yesterday's closing price, with total dividends not exceeding 711.33 million baht. The business plan for 2020 will be announced on March 4.

 

 Mr. Pirapong Jarunek, CEO of Origin Property Public Company Limited (ORI), a comprehensive real estate developer, stated that although the overall real estate business in 2019 was considered a period of adjustment, the company maintained its ability to sustain profit levels and profitability effectively, achieving a net profit of 3,027 million baht. This reflects strong cost management, resulting in a gross profit margin of 43.5%, along with improved expense management, leading to a net profit margin of 21.4%, which is outstanding compared to the overall real estate sector facing price wars in a contracting market.

“With the dedication of our team, combined with strategic adjustments and planning, we have successfully targeted the right customer segments, allowing the company to create affordable products that can compete in a highly competitive market, ranking among the top in the real estate sector. This has resulted in an average sales rate of over 76% for newly launched projects last year, while maintaining excellent profitability. Additionally, the quality of our projects under various brands has earned consumer trust, leading to a steady transfer of ownership, generating continuous revenue and profit for the company. Furthermore, the expansion of our new business in the housing development sector grew over 200% from 2018, contributing approximately 1,500 million baht or 11% of total revenue. We also diversified risks by developing service businesses within the Primo group, which grew over 30%, and expanded into recurring income businesses, successfully completing new hotels in prime locations such as Thonglor and Sriracha ahead of schedule in 2019, set to fully open in the second quarter of this year,” Mr. Pirapong stated.

In 2019, the company launched a total of 20 new projects valued at approximately 24,200 million baht, comprising 4 housing projects worth a total of 6,000 million baht and 16 condominium projects valued at 18,200 million baht. The company reported sales of 28,942 million baht and total revenue of 14,122 million baht last year.

Mr. Pirapong further stated that for 2020, the company is confident in maintaining its gross profit margin and net profit margin at the same levels. In 2020, the company has several large condominium projects planned for continuous revenue recognition, including the Nightbridge Prime Sathorn project valued at 3,900 million baht, Nightbridge Prime Ratchayothin at 1,680 million baht, Nightbridge Prime On Nut at 2,600 million baht, Nightbridge Collage Ramkhamhaeng at over 2,054 million baht, Nightbridge Space Ratchayothin at over 2,700 million baht, and Nightbridge Kaset Society at over 1,300 million baht. Currently, the company has a backlog ready for continuous revenue recognition for over 3 years, totaling over 41,000 million baht.

Additionally, the company will begin recognizing revenue from hotel businesses opening in 2020, including Staybridge Suites Bangkok Thonglor and Holiday Inn & Suites Sriracha Laem Chabang, totaling 650 rooms, which will enhance the company's revenue recognition portfolio. In the fourth quarter of 2019, the hotel business partnered with a new ally, with One Origin Co., Ltd. entering into a joint venture with a new partner named CI:Z Limited Liability Partnership, a Japanese investor, through the sale of shares in One Sukhumvit 59 Co., Ltd., which will jointly develop the Intercontinental Bangkok Thonglor project. The company continues to see growth opportunities from its core business as well as in new ventures and is open to new partnerships to drive the platform across all business groups. The company will disclose the 2020 business plan for all subsidiaries on March 4.

In 2019, the company formed joint ventures with both existing and new partners, including (1) Nomura Real Estate Development Co., Ltd. to develop the “Park Origin Chula-Samyan” project, (2) Escon Japan (Thailand) Co., Ltd. to develop the “Nightbridge Sukhumvit-Thepharak” project, (3) Dusit Thani Public Company Limited to develop the “The Hampton Sriracha by Origin and Dusit” project, and (4) CI:Z Limited Liability Partnership from Japan to further develop high-end hotels.

“All subsidiaries will continue to be crucial cogs in driving the company's growth this year, from traditional businesses such as residential development to new ventures like recurring income businesses and services to ensure sustainability for the company,” Mr. Pirapong stated.

Mr. Pirapong added that the board of directors has approved a proposal to the annual general meeting of shareholders to pay dividends based on the company's performance for the second half of 2019 at a rate of 0.29 baht per share, equating to a Dividend Yield of over 9% based on yesterday's closing price, with total dividends not exceeding 711.33 million baht. The company will pay dividends in cash, with May 15, 2020, set as the record date for shareholders entitled to receive dividends, and dividends to be paid to shareholders by May 29, 2020.

Origin Property Public Company Limited has a diverse business structure, including 1.Residential Development Business that has developed 71 projects such as the PARK ORIGIN brand, The Origin, KnightsBridge, Notting Hill, Kensington, and BRITANIA, with a total project value exceeding 110,000 million baht. 2.Recurring Income Business such as hotels, serviced apartments, and retail. 3.Service Business such as 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.