Noble Announces Good News: 3 Highlights - Net Profit from Normal Operations for 9M/63 Reaches 1.238 Billion Baht

Growing 304% YoY from Strong Transfers from Thai and International Customers

Along with Stock Split and 4:1 Warrants Distribution to Existing Shareholders

Noble Development Public Company Limited ("the Company") showcased outstanding performance for the third quarter of 2020, generating total revenue from normal operations (excluding special income from land sales awaiting development) of 3.389 billion baht and net profit from normal operations (excluding special profit from land sales awaiting development) of 524 million baht, marking a growth of 308% YoY and 18,285% YoY, respectively. For the first nine months of 2020, the Company reported total revenue from normal operations of 7.412 billion baht and net profit from normal operations of 1.238 billion baht, growing 102% YoY and 304% YoY, respectively. The Company is confident that it will achieve total revenue exceeding 10 billion baht for the entire year of 2020, reaffirming its strength and leadership position in real estate development in Thailand. Additionally, the Board of Directors approved a change in the par value of the Company's shares from 3 baht per share to 1 baht per share and prepared to distribute warrants to purchase new ordinary shares to existing shareholders at a ratio of 4 existing shares to 1 warrant.

Mr. Thongchai Busarapant, Chairman and Co-CEO of Noble Development Public Company Limited stated, "The key factors contributing to the substantial growth in revenue and net profit this quarter stem from the recognition of revenue from the transfer of ownership of condominiums and completed housing projects from both Thai and international customers, such as the Noble B19 Sukhumvit project, Noble Ploenchit project, Noble B33 Sukhumvit project, and Noble Recole Sukhumvit 19 project, among others. The transfer from the international market exceeded 2 billion baht, reflecting the Company's strength in maintaining its leadership in the international real estate market. This also resulted in the Company holding a market share of up to 37% of total sales from all operators in condominium sales in Bangkok and its vicinity for international customers during the first nine months of 2020.

 

The Company has also achieved significant success with the launch of 3 new projects in the third quarter of 2020 under the "NUE" brand, including the NUE Noble Ngamwongwan project, NUE Noble Ratchada - Ladprao project, and NUE Noble Faichai - Wang Lang project, achieving pre-sale sales of over 40%-60% in each project. As a result, the Company currently has total pre-sale sales exceeding 6.1 billion baht in the first nine months of 2020, with over 3 billion baht coming from projects that are completed and ready for occupancy, allowing for immediate revenue recognition and further strengthening the Company's liquidity. As of the end of the third quarter of 2020, the Company has a backlog of over 15 billion baht, which will be recognized over the next 2-3 years.

 

Furthermore, the Board of Directors has resolved to change the par value of the Company's shares from 3 baht per share to 1 baht per share to enhance liquidity for investors. The number of ordinary shares will increase from 456,471,175 shares at a par value of 3 baht to 1,369,413,525 shares at a par value of 1 baht. The Board also approved the issuance of warrants to purchase new ordinary shares of the Company, Series 2 or NOBLE-W2, at no cost to existing shareholders at a ratio of 4 existing shares to 1 warrant, not exceeding 342,353,381 units, with an exercise price of 8.00 baht (in the event that shareholders approve the change in par value). These warrants will have a lifespan of 3 years and can be exercised after 1 year from the date of issuance (the first exercise can occur in June 2022). The purpose of this warrant distribution is to provide funding for future investments, in line with the Company's policy to expand its business and strengthen its capital base for operations over the next 3 years, aiming to become a Top 5 real estate developer in Thailand. As of the end of the third quarter of 2020, the Company has a net interest-bearing debt to equity ratio of 1.28, down from 1.58 at the end of 2019. Additionally, the Company has been rated BBB by TRIS Rating and had its credit outlook revised to "Stable" on October 19, 2020.

 

Following the Board of Directors' approval of these matters, the Company is preparing to hold an extraordinary general meeting of shareholders on December 23, 2020, to consider the agenda for changing the par value of the Company's shares and the issuance of warrants to purchase new ordinary shares, seeking approval from the shareholders' meeting. It is expected that the change in par value will take effect on the stock market in early January 2021, and the warrants are anticipated to begin trading in mid-January 2021," Mr. Thongchai concluded.

 

About Noble Development Public Company Limited

Noble Development Public Company Limited was established in 1991 and has been successfully operating for nearly three decades. Noble became a listed company on the Stock Exchange of Thailand in 1997 under the stock quote NOBLE. The Company primarily engages in residential real estate development, offering a diverse range of products including single-detached houses, townhouses, and condominiums, both horizontal and vertical. The focus is on presenting innovative living concepts to meet diverse consumer needs, providing new options for consumers. Each Noble project reflects the ideas and commitments of all personnel, showcasing creative design that meets modern living needs.

 

For more information, please contact:

Benjawan Muneekorn, Noble Development Public Company Limited

Email: [email protected], Phone: 02-251-9955 ext. 1415