RML Reports 2020 Revenue Growth on Target, Focuses on Strategies to Increase Income and Cash Flow

Raimon Land Public Company Limited (RML), a leader in luxury real estate development in Thailand, announced that its plans to increase revenue and liquidity are proceeding as expected, aligning with first-half pre-sales of 1.329 billion baht. The company emphasizes strategies to boost income and cash flow, anticipating full-year revenue growth to reach 2.5 to 3 billion baht.

Mr. Lionel Lee, CEO of Raimon Land Public Company Limited, stated that despite the ongoing uncertainty caused by the COVID-19 pandemic, which has made decision-making more challenging for customers, he remains optimistic that the overall real estate market will improve once the crisis subsides. Government economic stimulus measures, such as the reduction of transfer fees and mortgage fees for homebuyers purchasing properties priced below 3 million baht, are expected to boost consumer confidence and stimulate purchasing power in the second half of the year.

Demand for housing among foreign customers is also expected to rebound, particularly from Chinese buyers seeking second homes in countries with good safety and health standards. This has led to a global recognition of Thailand's effective handling of the COVID-19 outbreak. However, there are currently no indications that Chinese customers will cancel their reservations for the company's projects; they are simply waiting for the opportunity to enter Thailand once the country officially reopens.

The company anticipates that economic recovery in the second half of 2020 will be gradual. Therefore, it will continue to focus on strategies to accelerate revenue and cash flow. Recently, the company has been actively selling ready-to-move-in condominium projects, such as The Lofts Asoke, The Diplomat 39, The Diplomat Sathorn, The River, and Unixx, to enhance cash flow stability. Additionally, The Lofts Silom, a newly completed project, has started transferring ownership to customers who are gradually moving in. The company remains focused on sales for projects like The Estelle Phrom Phong, TAIT12, and The Lofts Ratchathewi, with first-half sales (pre-sales) totaling 1.329 billion baht.

For the business direction in the second half of the year, the company will enhance its strategy to target high-end customers residing in the country while adjusting designs under the concept of “Design for Living,” adding diverse functional spaces. The company will implement innovative marketing strategies, especially through O2O (Online to Offline) platforms that allow customers to virtually tour projects, making it easier to reach potential buyers. The company believes that long-term investment in real estate will continue to be in demand, particularly for those purchasing second homes, legacies, or personal assets. The company will focus on developing innovations that align with the needs and luxurious lifestyle of consumers.

Regarding plans for new projects, the company will proceed cautiously in response to the ever-changing situation. It has postponed the launch of a new luxury condominium project worth over 7 billion baht on Sukhumvit Road, which was originally planned for this year, due to unfavorable market conditions for residential real estate investment. The company is adjusting its investment strategy to wait for the right timing for economic recovery and consumer purchasing power.

In the Recurring Income business, the company plans to launch the KITCH HOTEL in late 2020 with a new concept called “Never Hungry Concept,” under the idea of “Welcoming Friends Home.” The first phase will focus on opening a restaurant zone, targeting domestic tourists, while phase two will aim at the Chinese and Asian markets interested in Thai food and culture once the country reopens.

For the Food & Beverage business, the company is currently strategizing a new approach for its Ban Ying restaurant, focusing on affordability, convenience, and the New Normal lifestyle of consumers.

Overall, the company expects its revenue for 2020 to grow in line with its target of 2.5 to 3 billion baht.