Lalin Property Public Company Limited announced its Q2 2020 results, reporting revenue of 1,304.4 million baht, a 50% increase from the same period last year. The company has consistently maintained better cost management than the industry average, resulting in an improved profitability ratio.

       Additionally, the company recorded a profit from the expropriation of one of its project sales, having received compensation. As a result, the net profit for this quarter amounted to 395.8 million baht, a 164% increase from the same period last year.

       The company’s board of directors has approved an interim dividend payment to shareholders at a rate of 0.25 baht per share, with the Record Date set for August 28, 2020, and the payment scheduled for September 11, 2020. Compared to the current stock price, this represents an annual Dividend Yield of approximately 9.7%.

::::::::::::::::

       Mr. Chaiyan Chakarakool, CEO of Lalin Property Public Company Limited stated that 2020 has been another challenging year for business operations, particularly due to the impact of the COVID-19 pandemic, which has severely affected the global economy, including Thailand. It is predicted that Thailand's GDP will contract by no less than 7-8%, with only government spending and investment remaining as the sole engine to support the economy, while other economic drivers such as income from foreign tourists, exports, consumption, and private investment have all been significantly impacted and contracted.

       The real estate sector has also contracted in line with the overall economy, with many companies beginning to feel the effects and experiencing losses.

       In terms of the company, which focuses on the market driven by real demand, and has adjusted its strategic plans to align with the situation, it has allowed the company to continue managing its business according to its set goals.

       In the first six months of this year, the company reported revenue of 2,562 million baht, an 18% increase from the same period last year. The company has also managed its costs effectively, reflected in an improved profitability ratio, with a Gross Profit Margin of 39.2% in the first half of the year, slightly up from 38.9% in the same period last year. Meanwhile, the SG&A/Sales ratio decreased from 11.4% to 10.1%. Additionally, in this second quarter, the company recorded special profits from expropriation in one of its projects, resulting in a total net profit of 643 million baht for the first half of 2020, an increase of 60% from the same period last year.

       Regarding business expansion, the company continues to invest in growth, having launched 5 new projects in the first half of the year, with a total value of over 3,500 million baht. Some of these projects are replacements for existing ones nearing completion, and the company is preparing to launch 2 additional projects this month and next month. Despite the ongoing investment expansion, the company has maintained financial risk control and kept its D/E Ratio better than the industry average, with a D/E Ratio of only 0.77 times at the end of the second quarter, lower than the industry average of about 1.5 times.

 

Source: Lalin Property Public Company Limited