Lalin Property announces strong third quarter results with continued growth
Revenue of 1.45 billion baht and net profit of 308 million baht, up 29% from the same period last year
 

Lalin Property Public Company Limited announced its third quarter results for the year 2020, reporting revenue of 1.45 billion baht, a 19% increase from the same period last year. The company has effectively managed various costs and implemented efficient marketing strategies, resulting in a reduction of SG&A/Sales to 8.9% in this quarter, with a net profit of 308 million baht, up 29% from the previous year. For the first nine months of 2020, revenue reached 4.01 billion baht, an 18% increase from the previous year, with a net profit of 950.9 million baht, up 48% from the previous year. The company is confident it will achieve its targets for this year.

Mr. Chaiyan Chakarakool, CEO of Lalin Property Public Company Limited, a real estate developer under the concept of “Homes Built on Good Intentions,” stated that 2020 has been a challenging year for business operations. The global economy has contracted significantly due to the COVID-19 pandemic, affecting the real estate sector amid rising household debt. The recently announced GDP for the third quarter shows a contraction of 6.4%, leading to a 6.7% decline in the Thai economy for the first nine months. However, the progress in vaccine development is promising and will help the global economy, including Thailand, gradually recover, although it is expected to take at least 1-1.5 years for economic figures to return to pre-pandemic levels.

In terms of the company, third quarter revenue was 1.45 billion baht, a 19% increase from the previous year, while cost management improved, resulting in a net profit of 308 million baht, up 29% from the previous year, with a net profit margin of 21.2%. For the first nine months of this year, despite a general market slowdown, the company has continued to meet its targets, maintaining growth in both sales and profits. In the first nine months, revenue reached 4.01 billion baht, an 18% increase from the same period last year, with a gross profit margin of 39.2%, reflecting effective cost management. The company has also improved its management of selling and administrative expenses (SG&A), resulting in SG&A/Sales for the first nine months dropping to 9.7%, down from 11.2% in the same period last year, leading to a net profit of 950.9 million baht, up 48% from the previous year.

The company continues to expand its business, partly to replace projects nearing completion and partly to create new business opportunities for stable growth. This year, the company has launched a total of 7 new projects worth over 5 billion baht and is preparing to launch another project in the remaining months of the year. The company maintains financial risk control and keeps its D/E Ratio better than the industry average. As of the end of the third quarter, the debt-to-equity ratio (D/E Ratio) stood at only 0.73 times, lower than the industry average of about 1.4 times, while the Net IBD/E at the end of the third quarter was 0.44 times, reflecting strong management and financial administration.