"Origin Property" has moved up to the TOP 3 in the real estate sector for Q2/2020, reporting profits exceeding 707 million baht after recognizing profits from two joint venture projects that generated an additional 743 million baht in transfers. The company maintained a net profit margin of 21.5% by tightly controlling costs and reducing unnecessary expenses, bringing SG&A down to 12.7% amidst fierce price competition in the market. The second half of the year is expected to show remarkable growth as the company prepares to recognize profits from two new joint venture projects, with a backlog of over 90%, and ten completed non-JV projects ready for gradual transfer, valued at over 17.1 billion baht. The company is confident in its "Origin Next Normal" plan in the smart condo market and the new brands "Belgravia" and "Brighton" targeting the new horizontal segment, supporting overall annual growth as planned.

 

       Mr. Pirapong Jarunek, CEO of Origin Property Public Company Limited (ORI), stated that the overall performance for Q2/2020 showed total revenue of 3.292 billion baht (Non-JV), driven by transfer growth of 3.088 billion baht, with a net profit of 707 million baht, up 58% QoQ and 19% year-on-year, following total transfers of over 3.832 billion baht, including 3.088 billion baht from non-JV projects and an additional 743 million baht from ongoing JV projects from the first quarter. This achievement has positioned the company among the top three leaders in Thailand's real estate sector.

 

       The company has also managed to maintain a high profit margin, with a net profit margin of 21.5% after effectively managing and controlling expenses. This includes strategic adjustments, focusing on aggressive marketing through online platforms and the "Everyone Can Sell" campaign, resulting in SG&A being reduced to approximately 12.7% from 19.7% in the previous quarter, amidst a market that has shifted to intense price competition.

 

       Regarding the outlook for the second half of 2020, the company is confident in continued strong growth according to its plans, including advancing the Origin Next Normal strategy in the smart condo business, incorporating new technologies and innovations in residential projects that address both Reaching Solutions and Living Solutions. The company is set to launch two new housing brands: Belgravia targeting the luxury market and Brighton aimed at Gen Y-Z, expanding into new segments. Additionally, there are over 14 projects awaiting launch in the second half of the year, with a total project value exceeding 16.7 billion baht.

 

       The company also has new completed projects, both housing projects and non-JV projects, ready for gradual transfer in the second half of the year, with an additional 10 projects.

Along with JV projects that will be completed and gradually transferred, including:

KnightsBridge Prime Onnut, which will start transferring in Q3/2020.

KnightsBridge Space Ratchayothin, which will start transferring in Q4/2020, with a total value exceeding 17.1 billion baht.

Moreover, the JV projects have a backlog of over 90% waiting to be recognized as revenue, ensuring that the overall growth for 2020 will meet the targets set at 14 billion baht in transfers and 16 billion baht in total revenue. 

 

“The impact of COVID-19 has made the first half of 2020 a challenging time for all organizations. However, with Origin's strength in instilling a Disruptor Mindset in all employees, we strive to think more, think in detail, and think innovatively, or Think Beyond. This has allowed us to remain a leader in the real estate business, adapting quickly to any situation with strategies and new solutions that meet proactive market demands. At the same time, we have excellently controlled expenses, resulting in outstanding growth in Q2 performance,” Mr. Pirapong stated.

 

Information: Origin Property Public Company Limited